Natural gas showed good strength on Thursday and, seems to be maintaining silence before a second upward move; while the traders eye a tropical depression building off the coast of Texas that may develop into Tropical Storm Hanna. If the storm hits the Gulf of Mexico, this could temporarily knock out gas production, which could result in a slower build in stockpiles. Natural gas futures could see a sharp run up in the upcoming week.
If natural gas can stay above $1.751 going forward, it could see a close this week above $1.889; which could definitely define the directional moves for the coming weeks.
Disclaimer: The author does not have any position in natural gas futures. Readers are advised to take any position at their own risk; as natural gas is one of the most liquid commodities of the world.