NatGas Update … Classic Price Action

NatGas futures (symbol: NG) exhibited classic price action with a swift pullback from the $6.493/MMBtu level achieved 24Feb14 to today’s current low print of $4.441/MMBtu. The roll from the Mar14 to the Apr14 contract created a small gap on the continuous charts overnight. (Note: Corrected contract roll months in previous sentence from Feb/Mar to Mar/Apr on 04Mar14.)

The pullback, although violent from a price perspective, has occurred with decreasing volume, suggesting the move is corrective in nature. Momentum indicators will require some time  to work off the overbought condition.

NatGas Chart, 27Feb14

Support lies at the $4.44 and 3.05 levels. Lots of resistance between $6.11 and 8.21 range.

Murphy & Co’s Natural Gas model is currently flat, holding no position.  To learn more about Murphy & Co’s position models, visit

Posted in Energy, Natural Gas, Uncategorized Tagged with: , , ,

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