Natural Gas Prices Continue to Meet Resistance at $3.30
Natural gas prices have started off the week with a move to the downside, with the contract for June delivery on the New York Mercantile Exchange losing nearly 2% with a move to $3.20/MMbtu.
Today’s high, near $3.30/MMbtu, matched the 61.8% retracement of the decline from the early April high. However, the contract found solid resistance at this level and made a move to the downside.
At present, it appears natural gas prices are moving lower, given today’s failed test of resistance. Support is currently being met at the mid-point of last Wednesday’s long green candle, near the $3.21 level. As long as this area holds, the broader bias for natural gas prices will remain to the upside.
According to natgasweather.com, a weather system will track across the east-central US the next several days with heavy showers and thunderstorms into the warm air, and a wintry mix into the cold air. It will remain very warm for another day over the East Coast where highs will reach the again reach the 70’s and 80’s before quickly cooling mid-week as the east-central system sweeps through. The west-central and southern US will see mostly above normal highs mainly in the 60’s to 80’s, locally 90’s over the Southwest and S. Texas. Overall, natural gas demand will be slightly stronger than normal.
Written by Tracy Morganthall