Natural Gas Futures
Natural Gas futures in the June contract is currently trading higher by 3 points at 2.94 as prices are right near a two-month high, continuing its bullish momentum in this week's trade.
I have been recommending a bullish position initially in the May contract at the 2.66 level. If you took that trade, the stop-loss has been raised to the 10-day low, which now stands at 2.73 as an exit strategy as to chart structure will also improve daily; therefore, the monetary risk will be reduced.
Fundamentally speaking, gas prices have underlying support from expectations for increased heating demand for nat-gas after Maxar said below-normal temperatures are expected for the central and eastern U.S. from May 4-8. Strength in foreign demand for U.S. nat-gas supplies is bullish for prices. Gas flows to U.S LNG export terminals on Thursday rose +64% y/y to 11.4 bcf. On Apr 18, gas flows to U.S LNG export terminals climbed to a record 11.921 bcf (data from 2014) according to BNEF.
Gas prices are trading above their 20 and 100-day moving average as this trend remains strong to the upside. I believe the 3.08 level, which was hit on Feb 18, will be breached in the coming days ahead as the entire energy sector remains in a longer-term bullish secular trend. In my opinion, there is room to run to the upside, so stay long as the volatility also should start to escalate in the coming weeks ahead.
CHART STRUCTURE: IMPROVING
Cotton futures in the July contract settled last Friday in New York at 88.80 while currently trading at 87.80, down about 100 points for the trading week. However, prices remain in a strong bullish trend to the upside. Continue reading "Futures Market Trending Higher"