December Natural gas has been trading in a ten cent range between $3.200 and 3.300 for the past week, before that $3.300-3.400 was the norm.  I believe that this pattern will continue between now and the first really cold forecast.  Moving averages are flattening out and so are momentum indicators.   Support comes in around $3.200 and resistance at about $3.300, with that said, closes above and below may move the price into the 10 cent range.

The actual build was lager than expected, 56 bcf v 47 bcf, which should keep the pressure on Dec. natural gas to keep going south. The added pressure of warm temperatures should keep prices in the current range, and I think the price of gas will continue to vacillate in that range. Staying on the sidelines, keeping your powder dry for a bigger move makes sense for now.  Any decisions should wait for confirmation by the charts, until then doing nothing is a trading strategy that works while we wait for confirmation of a move in either direction.

Natural Gas Dec ’18 Daily Chart

Natural Gas Dec '18 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.