Natural Gas Continues Bearish Trend This Week

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Natural Gas Futures---Natural gas futures in the March contract is currently trading at 2.44 after settling last Friday at 2.69 continuing its bearish momentum all due to forecasts for warmer U.S. weather that will curb heating demand for nat-gas continue to weigh on nat-gas prices.

The Weather Commodity Group on Thursday said that the U.S. South and Midwest should see predominantly higher-than-normal temperatures over the next 2 weeks and that prior forecasts for a polar vortex in the Arctic to drop down into the U.S. later this month is not going to materialize.

At the current time I'm not involved as I'm keeping a close eye on a possible counter-trend trade as I do think the spike bottom which was created on December 28th around the 2.26 level will hold as a possible Head and Shoulders bottom pattern could be forming in my opinion.

Natural gas prices are trading below their 20 and 100 day moving average as this trend remains lower to choppy, but I do think this commodity will join the rest of the energy sector to the upside it's just a matter of when as the risk/reward will become more in your favor especially if cheaper prices come about so be patient and sit on the sidelines. 






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