Natural Gas Futures Daily Trading Forecast

During Tuesday’s trading session natural gas futures for delivery in May traded within the range $4.463-$4.566 and closed at $4.551.

At 11:36 GMT today natural gas futures for settlement in May traded at $4.547 per million British thermal units, adding 0.28% for the day. The contract touched a daily high at $4.555 per mBtu at 02:00 GMT.

Fundamental view

The latest spring storm will bring a fresh dose of cold Canadian air in the US today, lowering temperatures to below-normal , NatGasWeather.com reported on April 9. The storm will push deep into the southern US leading to several days of strong natural gas and heating demand.

High pressure formation will rapidly build into the central and southern US Thursday and Friday, pushing temperatures into the 70s and 80s for many regions and 50s to 60s in much of the Midwest and Northeast.

However, cold blasts will return in the US around April 13-17th, as cold Canadian air moves back in the US territory, bringing significant surge in natural gas and heating demand.

The EIA weekly US gas storage report, due to be released tomorrow, 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 $4.591 per mBtu, it will probably continue up to test $4.630 per mBtu. In case the second key resistance is broken, the energy source will probably attempt to advance to $4.693.

If natural gas price manages to breach the first key support at $4.487, it will probably continue to slide and test $4.424. With this second key support broken, the movement to the downside will probably continue to $4.384 per mBtu.