Natural Gas Short-Term Forecast – May 9, 2018

This week, June natural gas has been bound within a very tight range between nominally $2.70 and $2.77. This is a challenging call right now because there are plenty of technical factors that indicate a break in either direction could take place soon. Even so, because the corrective range formed after a move down from $2.82 odds have a slight edge to break lower. A close below $2.70 would open the way for $2.66, $2.63, and possibly lower. Should prices settle above $2.77, look for the move up to challenge at least $2.81 and possibly $2.84.

Natural Gas - 0.02 Kase Bar
Natural Gas – 0.02 Kase Bar

All of that said, even upon a break out of the most recent range prices must still contend with the boundaries of a larger range that has persisted for the past few months between approximately $2.66 and $2.87.

For now, look for a break out of the smaller range between $2.70 and $2.77 within the next day or so to guide short-term trade decisions. There is still no evidence calling for a break higher or lower out of the larger range, so its boundaries would make for likely profit taking or stop and reverse entry levels until external factors provide more evidence to help determine a longer-term trend.

This is a brief analysis for the next day or so. Our weekly Natural Gas Commentary and daily updates are much more detailed and thorough energy price forecasts that cover key natural gas futures contracts, calendar spreads, the UNG ETF, and several electricity contracts. If you are interested in learning more, please sign up for a complimentary four-week trial.

Published by

Dean Rogers, CMT

Dean Rogers, CMT is the general manager of the Kase Call Center in Albuquerque, New Mexico. He oversees all of Kase and Company, Inc.’s operations including research and development, marketing, and client support. Dean began his career with Kase in early 2001 as a programmer but has developed into Kase’s senior technical analyst. He writes Kase’s award-winning weekly Crude Oil, Natural Gas, and Metals Commentaries. He is an instructor at Kase's classes and webinars and provides all of the necessary training and support for Kase's hedging models and trading indicators for both retail and institutional traders.

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.