Today we are expecting a build of 25 BCF on the natural gas inventory report at 9:30 CST. Natural gas prices have been in a steady decline lately and are sitting at a huge psychological level right now, $2.00. The fundamentals are as bearish as it gets with struggling demand and record supply. This is priced in and we may find a bottom soon, especially with producers operating at a breakeven or loss at these levels.
Today’s trade idea is to work bids to get long May natural gas at 1.91 with stop losses at 1.86. If this order is elected I suggest that day traders should look to take profit at 1.99 and position traders should trail the stop up 5 cents for every 5 cents the market rallies. $1.88 is the next major support level with 2.05 being the first resistance level.
Series 3 Licensed
Frank D. Cholly
Senior Commodities Broker
Frank has been involved in many aspects of the futures business, from taking and placing orders to providing high-quality order execution service. As a second-generation participant in markets at the Chicago Board of Trade, Frank spent his early years working in the Treasury bond pit servicing both institutional and retail clients. He then expanded his brokerage duties and began covering a wide range of markets, including stock index, metals, grains and the balance of the interest rate sector. U.... Read More
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