Energy

June Natural Gas Trends to the Upside in Seasonal Crossroads

Posted 05/17/2019 8:30AM CTJeff Ratajczak

Natural gas for June is continuing in a slight uptrend.  Resistance is seen at $2.670 then above at $2.700.  Support is near $2.450 then again around $2.500.  A close under the $2.574 level is needed to stop the bull trend.  A close under low support level should turn the trend to bearish.   Momentum studies are above 50% and still climbing.   This should accelerate a move in the direction of the trend.  A close above the May 14 high, $2.67 opens the door for a run to $2.700 and realistically $2.750.  Short-term moving averages are turning to the upside. 

June natural gas is at a crossroads in seasons.  Cooling season might put an early jump in prices as warmer weather rolls in to the Southeast.   Bearish storage numbers in Thursday’s EIA report have been pushed aside as the trend to the upside has resumed.  The market is still below the 5-year average and might be ready to jump to the upper ends of the trading range.  $2.760 and above could make way for a blow off top.   

Natural Gas Jun ’19 Daily Chart

Natural Gas Jun '19 Daily Chart

Jeff Ratajczak

Jeff attended Illinois State University. In 1993 Jeff began his financial career in the stock market as a retail broker. He transitioned to futures in 1999 with LFG Intermarket Group, which became ZAP Futures. In 2004 ZAP Futures was acquired by RJO Futures' parent company R.J. O'Brien. Jeff's focus is to assist clients in managing risk and speculate through futures and options strategies.