July has been mostly bullish for the Natural Gas market. Yesterday signaled a high move for the near term trend, and a high trade for the month of July. Momentum studies are at midpoints and trending higher. Use caution, because a divergence from the general price action may signal change from the current trend. The trend might be fading a bit due to the break up of Tropical Storm Don. No rigs were being shut down and there were no cut backs in production due to weather issues. Today’s gas storage number is expecting an injection of 39 bcf. Greater than the expected number could cause the market to reverse and sell off.
Weather until now has been a non issue, but rising temps over the past week have increased demand. The 6 to 10-day forecast is for hotter drier weather. A dome of high pressure will be in place for the weekend, and much of the country will experience above normal temperatures. Cautiously bullish plays are in order.
Sep ’17 Nat Gas Daily Chart