Are Natural Gas Prices Going Lower ?

Natural Gas Futures---Natural gas futures in the November contract is currently trading at 2.22 while settling last Friday at 2.35 down about 12 points for the trading week as prices are right near a 3 year low.

At the present time I am not involved as fundamentally speaking gas fell to a 1-1/2 month low Thursday on a larger-than-expected increase in weekly EIA inventories. The EIA reported that nat-gas inventories rose by 98 bcf, slightly above expectations of 97 bcf and above the 5-year average of +89 bcf. Nat-gas prices have been under pressure this week after the EIA in its Winter Fuels Outlook report Tuesday projected that nat-gas inventories will rise to a surplus relative to the 5-year average by the end of October due to strong U.S output and projections from the National Oceanic and Atmospheric Administration.

If you are bullish and you want to jump the gun you could buy at today's price level while placing the stop loss under the contract low which was hit on August 5th at 213 as the risk would be around $1,000 per contract plus slippage & commission, however that would be a counter-trend trade as I will be patient and wait for the chart structure to improve therefor the risk / reward would be more in your favor.

TREND: LOWER

CHART STRUCTURE: IMPROVING

VOLATILITY: LOW

If you are looking to contact Michael Seery (CTACOMMODITY TRADING ADVISOR) at 1-630-408-3325 I will be more than happy to help you with your trading or visit www.seeryfutures.com

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