Natural gas is coming off a six-week low, bouncing off the 100-day moving average at 2.855 with a close below that level prompting further liquidation. Natural gas was unable to hold the key 3.000 level despite largely widespread heat last week indicating that weather is not the only moving factor with demand continuing to buoy prices. The above average weather in the East Coast and Midwest is expected to temper into the beginning of next week which could allow inventories an opportunity to build. Inventories remain 20% below the five-year average. The market has fallen to near oversold levels with the next downside target at 2.80. Near-term resistance comes in at the 50-day moving average at 2.897.

Natural Gas Aug ’18 Daily Chart

Natural Gas Aug '18 Daily Chart

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Alex Turro

Senior Market Strategist

Alex began his career with an IB at the Chicago Board of Trade after graduating with a BA/BS from Indiana University. He then went on to work for a proprietary trading software company before joining RJO Futures as a Market Strategist.

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