Articles tagged Technicals

The October natural gas futures contract flew higher on Monday, building on the prior week’s rally and remaining comfortably above a key technical threshold. It settled at $2.613/MMBtu, up 17.9 cents day/day. This followed back-to-back gains to close out last week.

Despite a rally to launch the trading week, prompt month natural gas futures could soon face technical resistance.

While October natural gas futures traded between technical support levels, the closely watched March-April spread has narrowed early in the fall season, signaling less concern about adequate winter storage levels.

Price risk is to the upside as the downtrend in natural gas futures shows signs of exhaustion, according to technical analysts. However, they warned that market bulls should proceed cautiously, while keeping eyes on producers who may hold the key to a more sustained rally.

A five-day losing streak has sent September natural gas futures below the $2/MMBtu level for the first time since early August, but bulls might get breathing room after the contract rolls off the board Wednesday.

August natural gas futures are riding higher before rolling off the board next week with speculator positioning and technical levels providing support.

August natural gas futures have grown more oversold by the day in July, tumbling past multiple technical levels to converge with spot cash prices and put $2/MMBtu psychological support into view.

Natural gas price bulls took a hit late last week as prompt-month natural gas futures sold off, taking technical indicators out of oversold territory ahead of the June contract rolling off the board Wednesday.

June natural gas futures have rallied more than 40% in May, with the move higher over the past week putting technical indicators even further into overbought territory.

Prompt-month natural gas futures on the New York Mercantile Exchange (Nymex) neared $2.00/MMBtu last week but failed to push beyond a $1.943 Wednesday intraday high.