Natural Gas Futures Rally continues – Market still Strong
Jan, 24th 12:33
The Natural gas rally continued for the third day in a row on Wednesday, reaching the strongest level in around eight months as forecasts for frigid temperatures across the U.S. east coast during early February boosted demand expectations.
U.S. natural gas futures surged 9.3 cents, or around 2.7%, from its last close, to $3.537 per million British thermal units by 10:17AM GMT, after touching its best level since May 25th, 2017 at $3.621 at one point.
U.S. gas futures rose about 1.2% on Monday amid forecasts for more heating demand through early February.
Meanwhile, market participants looked ahead to this week’s storage data due on Thursday, which is expected to show a draw in a range between 260 and 275 billion cubic feet in the week ended Jan. 19th, 2018.
On the technical charts, natural gas is trading in the positive zone, above the upper band of the Bollinger bands. The market is trading above all the moving averages (9day, 20 day, 50 day, 100 day and 200 day). The RSI is at 72.35 and the MACD is above the signal line.
Buy digital Call options between 3.532 and 3.570, valid until 23:00 GMT January 24