Natural Gas Futures Daily Trading Forecast

During Wednesday’s trading session natural gas futures for delivery in May traded within the range $4.499-$4.592 and closed at $4.565.

At 07:10 GMT today natural gas futures for settlement in May traded at $4.577 per million British thermal units, losing 0.2% for the day. The contract touched a daily high at $4.583 per mBtu at 06:41 GMT.

Fundamental view

A weak cool front will sweep through the far northern US, while the rest of the country will experience warmer conditions, with highs mainly in thw 70s and 80s, NatGasWeather.com reported on April 10.

Temperatures will remain in the 50s to 60s for much of the Midwest and Northeast., before high pressure builds into the Great Lakes and New England later in the weekend, leading to several days of near to above-normal temperatures.

However, another weather system will track into the northern Plains on Monday with some freezing Canadian air and will push far into the central US, leading to few days of unseasonably cold temperatures.

The EIA weekly US gas storage report, due to be released at 14:30 GMT today, may show gas stockpiles rose by 5 billion cubic feet in the week ended April 4, capping the first increase for the season, according to Citi Futures in New York, cited by Bloomberg. That compares with a five-year average gain of 9 billion cubic feet for the comparable period.

Total gas held in US underground storage hubs fell to an 11-year seasonal low of 822 billion cubic feet as of March 28. US gas stockpiles were 51.6% below last year’s amount of 1.700 trillion cubic feet during the comparable week. The deficit to the five-year average widened to a record 54.7%, up from 50.8% a week earlier.

Technical view

According to Binary Tribune’s daily analysis, in case natural gas price manages to breach the first resistance level at $4.606 per mBtu, it will probably continue up to test $4.645 per mBtu. In case the second key resistance is broken, the energy source will probably attempt to advance to $4.698.

If natural gas price manages to breach the first key support at $4.512, it will probably continue to slide and test $4.459. With this second key support broken, the movement to the downside will probably continue to $4.419 per mBtu.