Chart of The Week - Natural Gas

Each Week will be providing us a chart of the week as analyzed by a member of their team. We hope that you enjoy and learn from this new feature.

This week's focus turns to the March Natural Gas futures, where strong price action stemming from bullish fundamental data gives way to a possible buying continuation. Total Natural Gas storage stands at 1.686 bcf, or 27% below the 5-year average. This draw in supply has been aided by recent extreme cold temperatures across the United States.

After posting a recent swing low of 4.563 last week on Monday, February 10, 2014, the market has experienced a sharp climb in prices. Last week, we also saw the 20 day moving average act as support for the bullish market on multiple occasions, making this indicator a key support level in a swing trade opportunity.

As we start this week, we have seen yet another push up to the 5.400 level, indicating the Natural Gas market still holds a bullish sentiment. In the next few days, I would anticipate some profit-taking off of last week's sharp up-move. If the market sells off of last week's high levels, I would anticipate a buying opportunity at the 20 day moving average, once again using this indicator as support for the market. The target for this market would be yet another higher high, looking for the market to close above 5.500. Coupled with a strong Average Directional Index reading, this would signify further bullish sentiment.

I advise clients on trading futures and futures options markets on a day to day basis. If you have any questions regarding this chart or questions regarding trading futures and futures options, feel free to call me directly at 888-272-6926.

If you would like to discuss trading in the Futures and Futures Options markets with me, please feel free to call or email me directly. You can reach me directly at (888) 272-6926.

Thank you for your interest,
James Leeney
Account Executive
Phone: (888) 272-6926

** There is a substantial risk of loss in trading futures and options. Past performance is not indicative of future results. The information and data contained in this article was obtained from sources considered reliable. Their accuracy or completeness is not guaranteed. Information provided in this article is not to be deemed as an offer or solicitation with respect to the sale or purchase of any securities or commodities. Any decision to purchase or sell as a result of the opinions expressed in this article will be the full responsibility of the person authorizing such transaction.