Natural Gas in Good Area of SupportPosted 10/04/2019 9:50AM CT |
Good morning and happy Friday to all. Natural gas for November is trading $2.325 as of this writing. Natural gas seems to be in an area of good support near the$2.300 handle. This week, the range of trades is once again in a $.10 range between $2.300 and $2.400. Short term moving averages are beginning a down turn, RSI and MACD are also in downward trend. Today’s pivot numbers are $2.315, which is almost exactly the support number. $2.367 and $2.405 are nearby resistance. Support comes in at $2.277 and $2.225 on a standard pivot point calculator. If we break and close above today’s high, I would think a rise in prices to resistance levels is very possible. Below $2.400 may hold the price near the range’s bottom.
Yesterday’s surplus numbers were slightly bearish. We were expecting a 106 bcf injection, the actual number came in at 112 bcf. Today’s weather in the Midwest shows seasonable albeit cooler temperatures. This may give a little support to prices. The market showed a strong up day yesterday due to a slight disruption in European production. The trade and economic conditions in China may hold back traders from jumping on the bull side of the market. Once again, the trade will depend on prices going to the support or resistance numbers as the day progresses.