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Natural Gas Price Fundamental Daily Forecast – Could Strengthen Over $2.810; Weather No Help

By:
James Hyerczyk
Published: Feb 6, 2018, 08:46 UTC

Basically, it’s going to be cold until the week-end. This isn’t enough to sustain a strong rally. However, the market may be ripe for a short-covering rally.

Natural Gas

Natural gas futures are trading slightly higher early Tuesday. The market is trading inside Monday’s range which suggests investor indecision and impending volatility. Yesterday, the market pierced a potential support zone, giving it a downside bias. However, the trend will remain up as long as $2.693 holds as support. Traders continue to monitor the 8 to 14 day forecast.

At 0830 GMT, March Natural Gas futures are trading $2.774, up $0.027 or +1.02%.

Natural Gas
Daily March Natural Gas

Forecast

NatGasWeather.com, has updated its forecast for February 5 to February 11. “Two weather systems will sweep across the North and East this week with the first already through the Midwest and approaching the East. A second system will follow mid-week with a similar track. Lows for both of these systems will be quite chilly with 20s to -10F over the northern U.S., and 20s and 30s into the southeastern U.S. The western and south-central U.S./Texas will be mostly mild to warm this week with highs of 50s to lower 70s. A mild ridge will expand over the northern and eastern U.S. next weekend, while fresh cooling will arrive over the central U.S. Overall, national demand will be high through Friday – Saturday, then easing.”

Basically, it’s going to be cold until the week-end. This isn’t enough to sustain a strong rally. However, the market may be ripe for a short-covering rally.

A bottom could form slightly above the $2.693 main bottom, however, don’t expect a surge to the upside unless buyers can overcome $2.810. An even bigger short-covering rally could develop if buyers can overtake $2.896 to $2.909.

If $2.693 is taken out then the trend will turn down. However, it will be difficult to short weakness at that level because the next main bottom comes in at $2.532.

About the Author

James is a Florida-based technical analyst, market researcher, educator and trader with 35+ years of experience. He is an expert in the area of patterns, price and time analysis as it applies to futures, Forex, and stocks.

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