RJO FuturesCast

Daily Futures Market News, Commentary, & Insight

Natural gas for December is still moving sideways to down, but we are starting to see momentum studies turn up from being oversold. It is challenging the important 3.000 level, and resistance is seen near 3.012. If this level is breached and closes above, we may see December gas return to a range where 3.000 is the support floor and above 3.100. If the contract closes below 3.000 look for prices to meander sideways beneath resistance.

The above average temps in the next 6-10 day’s forecast are pressuring the price down. However, we should be cautious coming in to heating season (Nov. 1) as we are below the 5-year average in storage, and a cold snap could put a charge in the pricing of gas in the short term. I’d recommend conservative long exposure. 


Dec ’17 Natural Gas Daily Chart

Dec '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.