Technicals Suggest Natural Gas Futures In ‘Early Innings of a Long-Term Bullish Cycle’

Technical indicators suggest some difficulty for natural gas futures in maintaining upside momentum amid a lack of near-term fundamental support. But longer-range fundamentals, including lagging production and rising LNG exports, point to an extended bullish trend.

The April natural gas futures contract jumped overnight to a $4.901/MMBtu high before backing off to settle the week’s opening session 9.2 cents higher at $4.491

“Prompt month natural gas futures showed a bit of flash Sunday evening by gapping slightly higher at the open then flirting ever so briefly with the $5.00 mark before plummeting back toward the bottom of that gap,” said NGI’s Patrick Rau, senior vice president of research and analysis.