RJO FuturesCast

Daily Futures Market News, Commentary, & Insight

Today the trend in July natural gas is sideways to down. Any bullish action should be contained by yesterday’s highs. Resistance is at 3.350 and above that at 3.401. Support can be found around the 3.250-3.260 level on the daily chart below.

Weather has not had a significant effect on supporting pricing. A cool stretch has cut down cooling demand, and if the forecast holds true, it will be delayed until much later in the summer.

A 72 bcf build is expected this week. A reading below that mark would be considered bullish territory. Caution should be used when making a bullish trading decision, because to nullify the bearish trend there must be a close over the corrective high of 3.371.

The 2-day slide should continue due to a change in momentum, and may continue with prices trending down to levels below 3.200. Momentum indicators (RSI, Stochastics, and MACD) are at mid-levels and trending lower, which should accelerate a move down if support is broken. Today’s trade idea is to gain exposure to the short side of the market. Either short a contract near 3.330 with a stop above 3.350, or look at a bear put spread for July.


Jul ’17 Natural Gas Daily Chart

Jul '17 Natural Gas 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.