After a rocky Nov and Dec. the trading range for natural gas is between $2.800 and $3.000 with a sideways trend. Just like last year, not much happened until November when price basis March ran to $4.600. Support comes in at $ 2.770. Resistance is at $3.028. Eventually, I believe the price will try to fill the gap to 3.109 as soon as the weather turns to a more seasonable pattern. Momentum studies are at low levels and turning up now. Until we get confirmation from the other indicators, price action should stay in the range.
It’s cold in the Windy city, but weather forecasts signal above average temperatures for the coming 2 weeks. Today’s est. is for a draw of -62 bcf. The actual storage number was closer to -92 bcf, however the market seems to be absorbing the draw with no problem. As of Thursday morning, natural gas is up around 3.5 cents at $2.870. The top of gap should be taken as a profit target. Support levels can be used to bail on bullish strategies and colder weather should support prices as the polar vortex moves in later in the winter.
Natural Gas Mar ’19 Daily Chart