Natural Gas Price Fundamental Daily Forecast – Turns Short-Term Bullish Over $2.810

Natural gas futures are trading higher on Wednesday shortly after the opening. The market broke sharply on Tuesday, but recovered most of its earlier losses into the close. We’re looking at a possible two-sided trade today ahead of Thursday’s U.S. Energy Information Administration’s weekly storage report.

At 0822 GMT, June Natural Gas futures are trading $2.781, up $0.11 or +0.40%.

Traders are expecting a rare April storage draw in this week’s EIA report. The data is expected to show a 23 billion cubic feet drawdown. This is unusual event is being caused by a winter that won’t go away in several key demand areas in the U.S.

According to NatGasWeather.com, “Stronger than normal national total heating and cooling degree days will continue into the weekend as another weather system with rain and snow tracks across the northern U.S. Demand will finally ease to very light levels going into the last week of April, holding into the first few days of May.”

“Overall, demand will be high through Friday – Saturday, then easing to moderate.”

The market is currently trading between multiple retracement levels. This is helping to contribute to the two-sided price action.

On the downside, support is $2.766, $2.753 and $2.735. The trigger point for a potential acceleration to the downside is $2.735.

On the upside, resistance levels come in at $2.792 and $2.807. The trigger point for a potential acceleration to the upside is $2.810. The daily chart shows there is room to run to $2.847. However, it is going to take a strong combination of speculative buying and aggressive short-covering to drive the market into these levels.