Will There be a Turn Up in Natural Gas?

October 30, 2017 12:35PM CDT

Natural gas for December is still moving sideways to down, but we are starting to see momentum studies turn up from being oversold. It is challenging the important 3.000 level, and resistance is seen near 3.012. If this level is breached and closes above, we may see December gas return to a range where 3.000 is the support floor and above 3.100. If the contract closes below 3.000 look for prices to meander sideways beneath resistance.

The above average temps in the next 6-10 day's forecast are pressuring the price down. However, we should be cautious coming in to heating season (Nov. 1) as we are below the 5-year average in storage, and a cold snap could put a charge in the pricing of gas in the short term. I’d recommend conservative long exposure. 


Dec '17 Natural Gas Daily Chart

Dec '17 Natural Gas Daily Chart

RJO Futures | 222 South Riverside Plaza, Suite 1200 | Chicago, Illinois 60606 | United States
800.441.1616 | 312.373.5478

This material has been prepared by a sales or trading employee or agent of RJO Futures and is, or is in the nature of, a solicitation. This material is not a research report prepared by RJO Futures Research Department. By accepting this communication, you agree that you are an experienced user of the futures markets, capable of making independent trading decisions, and agree that you are not, and will not, rely solely on this communication in making trading decisions.