October Natural Gas Trending Sideways

August 30, 2018 10:56AM CDT

The short term trend in the October natural gas is sideways. The contract price seems to be settling between $2.800 and $2.900. A close below $2.799 will rekindle bear forces, while a close above $2.900 may turn the bull forces on and run back up toward the $3.000 mark.

Cooling season is ending in the United States. The market is being supported by warmer than normal weather throughout the Northeast and Midwest through the long Labor Day weekend. The momentum indicators are at mid-levels and starting to trend downward. A downward trend can signal a move towards lower gas prices.

The EIA storage report for today shows an increase of 58 bcf today.The amount of gas held in storage is below the 5 year average, it is also below the yearly average by 20%. A cautious bearish position is recommended, puts on October gas can limit losses.

 Natural Gas Oct '18 Daily Chart

Natural Gas Oct '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.