Natural gas market continues to be strong

Naturl Gas (NYMEX:HPM14)

The natural gas market continues to be strong as concern surrounding the depletion of storage levels continues to support prices. Today should aid in giving investors and traders alike a better perspective of how much natural gas is available with the EIA set to release their weekly storage number at 9:30 am CT (preliminary estimates call for a build of 72-79 bcf). Technically the market has been strong throughout the entire month of April, making higher highs and higher lows while laying out a fairly well-defined ascending trend channel. Both near-term momentum and intermediate-term directional bias appear to favor further gains in natural. Look for near-term momentum to remain very bullish above the 4.750 support pivot, with the intermediate-term positive bias in effect above the 4.643 low. Given recent price action in natural gas, long positions seem to be a higher probability opportunity in this market.

Those individuals looking to play the long side of the market should keep an eye on the 4.850 and 4.892 levels on the chart as they have the potential to provide significant resistance. A sustained trade above 4.892 would mark a new high in June natural gas and would serve as confirmation of the strong bullish tone of the market; however, a trade below the 4.750 level today could negate the aggressive bullish momentum in natural gas, opening the door to potential consolidation and/or corrective price action.

Natural Gas 30-minute Bar Chart (e-Signal)



There’s been some very interesting price action in the euro over the past few days and price now looks to be on its way up to the 13900 pivot. After selling off almost exactly to the intermediate-term ascending trendline on the chart, price action rallies sharply off this technical level and continues to do so after a disappointing GDP number pulled US Dollar Index prices lower. As a result, the euro capitalized on the opportunity to regain lost ground and now looks to retest previous resistance at the 13900 level on the chart.

Price has been relatively sideways over the past two weeks; however, yesterday’s price action warrants a bullish tone in near-term momentum. If price can break through the 13900 pivot, there is a strong possibility that it was retest the 13932 pivot and perhaps make a move toward 14000. Ideally, price should remain firm above 13842 with additional support around 13810. Until price begins to show technical weakness in the form of new relative lows, traders should continue to look for opportunities on the long side of the euro.

Euro Currency 30-minute Bar Chart (e-Signal)



About the Author
Erik Tatje

Erik Tatje is currently a market strategist at RJO Futures and is the author of The Tatje Reporta daily technical correspondence. As a member of the Market Technicians Association, he has distinguished himself as a professional in the field of Technical Analysis and currently holds the Chartered Market Technician (CMT) designation. Erik can be reached or 312.373.5176. Learn more at

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