Natural gas futures price prediction – Prices trade in a range!!!

Early last week Natural Gas futures were seen trading high but after the EIA Natural Gas storage report was released, prices fell. Natural gas September contract which was trading around 194 is trading at 179 today. 

Natural gas futures price prediction
Natural Gas price prediction Generatebucks

Early Monday Natural gas futures in International market found support at $2.52. Question now is if this rally would continue or we should expect more downward trajectory?

In any case a smart trader will make profit 

Fundamental and technical analysis

Weather outlook

During this time of the year, we can expect storms in US but none of the predicted storms are expected to hit natural gas infrastructure locations. Tropical storm Karen is moving toward the Bahamas but it is not expected to move toward the Gulf of Mexico. The weather is expected to be much warmer than normal over the next 8-14 days according to the National Oceanic Atmospheric Administration. This could increase cooling demand, during a period when the weather usually turns cooler.

Technical charts

Natural gas futures moved higher on Monday and support was seen at 176 at MCX for September contract. Based on the current movement and fundamentals, we can expect natural gas markets to trade in a zone.

Looking at current Natural gas weather prediction and the demand & supply situation, Natural Gas prices can be seen trading at $3.00 or more during this winter season. Base on the buying potential we could then expect it to trade higher than $3.00.

Support is seen at $2.52 and if buyers could cross the above resistance $2.60 then we can expect prices to trade around 2.70 by 1st week of October.

Trading tip

Buy Natural Gas futures on any dips. Positional traders are offered second chance to enter the market and buy natural gas. I would advise investing in November contract at MCX. Enter market at 192 and hold you position for a month for target of 210-215 

Remember Natural Gas is a volatile counter so invest only if you can hold your position.

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