US Natural gas futures price analysis

Natural Gas prices continued its’ chiseling price action lower yesterday and held to slide on Tuesday but held the line in the sand at 2.650 moving one-tick lower but saving itself from price annihilation. Demand is clearly under pressure as the weather forecast into the holidays is expected to be warmer than normal for most of the United States especially in the traditionally colder belts of the mid-west at least for the next 2-weeks. Hurricane Iota was downgraded to a tropical storm causing sustainable damage in regions of  Nicaragua and there is no real expectation of disrupting any US Natural gas infrastructure  including the southern regions. Demand over the near-term horizon therefore has fallen, driven by lower building consumption.

Natural Gas futures are still trading the December-20 expiration contract unlike WTI Crude which has seen brokerages roll to the first front-month of the upcoming year [Jan-21].Ironically, the price has a nice long setup leading into the extended timeframe short which we present below in an easy to read and trade tabular format. At TradeGuidance, we try to give our readers actionable trade ideas that they can run with during the intraday trading hours and not have to sweat the small stuff by carrying positions into the overnight timeframe when a whole lot of information becomes unpredictable from global events at least in the short term. Trade with stops and always learn to only risk what you can afford to lose.

Trade ideas

Counter-trend long setup

Trending short setup