June Natural Gas in an Uptrend – for Now

April 26, 2018 9:15AM CDT

The trend in the June natural gas June is up.  Bullish forces will be in control with a close over yesterday’s 2.825 high, signaling a continuation of the trend upward to challenge the March 13 high of 2.873.  Resistance is seen at yesterday’s high and above that near the 2.850.  Support today is at 2.780, further out support is seen just under 2.750.  A close below, will send the market back into the 2.700-2.650 range.  Momentum studies are at mid-levels and starting to turn south.  This may increase a move down if support is broken.  If neither price is penetrated some consolidation may occur, but the trend will still be intact.

Today’s estimated EIA storage number is a -11bcf draw.  The five-year average for this week is a 60bcf build, this disparity favors the bull camp.  The weather is starting to turn more spring like and heating demand is waning with the seasonal change.  Warmer temperatures should bring 80’s to the Midwest, but along with the warmth comes the risk of severe weather. Demand for electricity for cooling has yet to be a major force in gas prices.  Continued exposure to the long side of the market should be considered.

Natural Gas Jun '18 Daily Chart

Natural Gas Jun '18 Daily Chart

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

The risk of trading futures and options can be substantial. Each investor must consider whether this is a suitable investment. Past performance is not indicative of future results. Trading advice is based on information taken from trades and statistical services and other sources that RJO Futures believes to be reliable. We do not guarantee that such information is accurate or complete and it should not be relied upon as such. Trading advice reflects our good faith judgement at a specific time and is subject to change without notice. There is no guarantee that the advice we give will result in profitable trades.

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.

Distribution in some jurisdictions may be prohibited or restricted by law. Persons in possession of this communication indirectly should inform themselves about and observe any such prohibition or restrictions. To the extent that you have received this communication indirectly and solicitations are prohibited in your jurisdiction with registration, the market commentary in this communication should not be considered a solicitation.