Natural Gas Week Ahead - Saturday, March 16

Natural Gas futures on the Nymex faced a negative week as price closed at $2.79 on Friday, 2.70% lower than the week before. Thursday’s storage report by EIA confirmed a withdrawal of 204 Bcf which is considered average for a week ending March 8, although many analysts predicted this number to be closer to 210 Bcf.

As anticipated, price got pressed after this and the bounce we were seeing in the last few weeks is about to be sold entirely. We could remain inside this range though, and see similar movements in the coming weeks, or price could go even lower in a hurry as the post-winter bearish sentiment will fuel it even more. Selling rallies is what we like to do and any sign of exhaustion is to be taken.

Weather for the coming week is expected normal for this time of season in most parts of the U.S. where demand is higher. We can’t buy this market for a longer period, not before we see a break above $3.20, just as we did last year. This area may not even be reached until Fall. If macro and fundamentals remain stable for the coming months, U.S. Natural Gas price will endure pressure. Daily MACD might also cross bearish in the coming week. The 4hour MACD and RSI offering precision in our entry decisions. Trading volumes also favor selling.

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