The Battle In Nat Gas

Retail money continues to get flushed. Don't expect them to be heavily invested if this market turns on a technical trigger.

Natural Gas (UNG) and the Commercial (C) & Nonreportables (NR) Traders COT Futures and Options Stochastic Weighted Average of Net Long As A % of Open Interest


The diffusion index (DI) is turning towards a bullish setup. The sluggishness of the turn suggests the intensity of the battle raging in Nat Gas.

Natural Gas (UNG) and Natural Gas Diffusion Index (DI)


Headline: US GAS: Futures Rise As Market Remains In Narrow Range

Natural gas futures rose Friday as the market continued to swing in its recent range below $4 and traders weighed whether futures have adequately accounted for the mild weather that's seen cutting demand in the coming weeks.

Natural gas for April delivery settled 5.9 cents, or 1.5%, higher at $3.889 a million British thermal units on the New York Mercantile Exchange.

Futures have sold off sharply since the end of January as traders anticipated the arrival of the spring dip in demand for the heating fuel. But the market has repeatedly found support near the $3.80 level, as market participants who had bet prices would decline cashed out to profit from the weakness, while others viewed gas as a bargain at those prices.

Source: online.wsj.com