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