Natural gas futures seem to be defining a support-base in this most recent down-trend due to forecasts bitter cold weather returning after the mild weather many have been enjoying this week. Natural gas futures are fluctuating around the $2.90 per btu’s today in New York’s Mercantile Exchange.
Later this month and into February, two-thirds of the eastern portion of the USA is predicted to have “below normal” temperatures while the low in Chicago is expected to be 5 degrees lower than normal sometime during that period. The low’s in New York are predicted to be as much as 11 degrees lower than normal. This has the potential to halt falling natural gas prices which crashed last month.
“Natural gas futures traders are taking a hard look at the forecasts for the end of the month and beginning of February,” said Kevin Craney, Director of Managed Futures at RJO Futures in Chicago, shared his fundamental analysis insight regarding the current natural gas futures situation. Craney added, “If last week’s low can hold, we can easily see a return to the mid-$3.50 level of natural gas futures.”
The trend for natural gas futures is down with clear basing action in progress. Not only does natural gas futures need to hold last week’s low, but a breakout above last week’s high of $3.30 will be in order.
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