Is This The Time To Make A Short Position In Natural Gas?

Natural gas futures slid in New York for the first time in four days on forecasts of moderating temperatures that would limit demand for electricity generation. Gas declined as much as 2.6 percent as Commodity Weather Group LLC in Bethesda,Maryland, predicted normal weather in most of the eastern half of the U.S. from July 10 through July 19. The high in New York on July 12 may be 84 degrees Fahrenheit (29 Celsius), matching the usual reading, according to AccuWeather Inc.

Natural gas for August delivery fell 8.9 cents, or 2.4 percent, to $3.601 per million British thermal units at 9:20 a.m. on the New York Mercantile Exchange. Trading volume was 7.7 percent below the 100-day average. Prices have climbed 7.5 percent this year and 1 percent this week.


Working gas in storage was 2,605 Bcf as of Friday, June 28, 2013, according to EIA estimates. This represents a net increase of 72 Bcf from the previous week. Stocks were 491 Bcf less than last year at this time and 30 Bcf below the 5-year average of 2,635 Bcf. In the East Region, stocks were 92 Bcf below the 5-year average following net injections of 48 Bcf. Stocks in the Producing Region were 19 Bcf above the 5-year average of 952 Bcf after a net injection of 14 Bcf. Stocks in the West Region were 43 Bcf above the 5-year average after a net addition of 10 Bcf. At 2,605 Bcf, total working gas is within the 5-year historical range.


On semiannual technical chart US natural gas creates a format of rising wedge in down trend it indicated that US natural gas short term bearish trend will continue below its near crucial resistance 3.736. You can see more up side level 3.800 and 3.880 if natural gas crosses its crucial resistance 3.736 and close on it. Natural gas new IC red cloud will creates below 3.530. If NG holds on 3.530 then you can see strong short covering next week. Quarterly RSI and MACD also move in negative territory.