Natural Gas week ahead

Natural Gas market rallied during the week. Friday closed at $2.80, 3.80% higher than the week before. Natural gas remains 18% lower than a year before. Thursday’s U.S. storage report had a positive effect as withdrawals were higher than expected. However, having reached a crucial resistance level, we will be looking to sell any sign of exhaustion as opportunity will arise. We remain patient and focused on short term trading. We do not want to buy this market, not before seeing a true change in its long term trend, certainly well above the $3.00. Summer is not here yet, so, this week’s demand will remain low on mild weather in the United States and Canada, therefore, a short term rise in underground stocks is expected which will affect negatively the price. Stronger US dollar will also have to be monitored. Traded volumes, changes in RSI’s direction tell us a lot, as well as the daily and 4-hour MACD.


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