Natural Gas futures forming a shooting star – Generatebucks

Natural Gas market rallied earlier this week but sellers jumped in mid-week. Natural Gas April contract was seen trading at 189.50 earlier this week and closed at 184 yesterday.
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Looking at international markets, Natural Gas futures have been trading in a range from $2.50 to $2.70 for quite some time.

Natural Gas Futures forming  a shooting star -
I feel that this range would continue since the weather forecast in not favoring the prices. We could expect normal to slight warmer weather in US in coming week or next.
I think we can eventually see this market trading at $2.25 which would extremely oversold positions.

Natural Gas EIA storage report

Analyzing the EIA storage report, natural gas in U.S. storage facilities increased 25 Bcf to 1.155 Bcf in the week-ending April 5. The injection was smaller than the consensus estimates, which called for a 33 Bcf injection.

Looking at the short-term weather, natural demand could be a slight moderate to low. We can expect sellers taking over the market coming week.

We have been trading around this point for some time now and these are over sold levels but we might see a bit more downside before we see a rally.
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Trading strategy

Natural Gas futures are weak and I don’t see a big rally. Every rally will be small due to short covering. I expect MCX natural Gas futures to follow a downside momentum.

We can expect short rallies this 187-189 in coming week if any but ultimately, we can prices to touch 180, 175 in near term

I also don’t see much upside here since when it starts getting a little warm, we can expect buyers to jump in

At this point, it would be quite safe for sellers to trade at any rallies, so if you are a sellers 187-189 would be a great rate for you to trade.
#nat gas investing

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