Natural gas futures declined on Sunday, reacting to milder temperatures during the week and falling demand for heating. All eyes are now on the next week's forecast, which may contain some cool temperatures. Although we can see a few rallies with short coverage due to periodic cold shots, in the current forecasts there is nothing that shows expectations for long-lasting cold systems, so the chances of a prolonged rally are low.
In 0127 GMT, March natural gas futures traded at $ 3,117, $ 0.186 or -5.63%.
NatGasWeather said: "There will still be a decent cold shot across the country from January 1-3, but the break from January 4-7 continues to keep the trend warmer longer, and where much demand for heating has been lost since the beginning of the week."
The forward further said: "Again, it's likely that there will be a lot of cold air over Canada during the second week of January, but the cold over Canada is not cold over the United States and will have to continue to the south for bullish feelings of return."
First, cold air parked in Canada will have to enter the United States. Secondly, you will be the very very own park in the key areas of demand in the Midwest and the East Coast. Prices are likely to continue to fall until more permanent cold weather patterns appear in weather charts.
Technical analysis of weekly swing
The main trend has been reduced by the weekly swing natural gas scheme in March. The main trend will turn the trend of trade through its closest swing to the bottom of $ 2,890.
The main range is 2,810 to 4,608 dollars. Trading under a turning zone of 3,497 to 3,709 dollars helps to give preference to the market. This diversion zone is a new resistance.
Weekly Swing Table Technical Forecast
Today's gap on the weekly table creates strong negative pressure. If this continues, then I expect to see a test for the next two major bottoms at $ 2,890 and $ 2,810 in the near future. A low futures contract is $ 2,715 from February 23, 2016.
Submission in the gap will be the first sign of renewable power, even if it is only a short coverage. Turning higher for a week of trade through $ 3,148 will be the next sign to buy.
If you list the table in the near futures, then the main trend was previously denied today, when vendors pulled out the previous bottom of the bottom at $ 3,136. If this created enough flaws, then we could see that sales stretched to the main bottom of 2018 at $ 2,813 and $ 2,748.
Basically, we are looking at a weak market this week, while buyers can turn this market higher and put in a position to post weekly closing prices back the bottom.