Natural Gas Continuing Downward TrendPosted 04/04/2019 8:44AM CT |
The trend in natural gas for May delivery is down today. This week has seen trading within a range between $2.6500 and $2.700. Tuesday’s inside day keeps a continuation of the current downtrend. Yesterday’s lower high and low, keep downward pressure on the price action today. Today’s lower high sets up a sell-off, if the lows close below $2.656. $2.600 for the down side is not out of the question. The moving averages and momentum studies are both in agreement and are pointing to lower prices in the coming future.
Spring has arrived, and normal temperatures are being recorded in most of the USA. A small dip is expected late in the week, but only for a day or so. The weekend should be back to normal to higher temps. A small draw of 2 bcf is expected today. The season is still between heating and cooling, so the demand is still not there. Shale wells continue to produce, even though prices are low. Continuation of the current trend is expected, and a sell-off to January’s low of $2.570 is not out of the question. A close above $2.780 would be needed to reverse the trend.
Natural Gas May ’19 Daily Chart
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