Natural gas futures are trading lower on Tuesday shortly before the regular session opening.
The market turned lower after hitting its highest level since December 24 earlier in the session.
We’re in a weather market so volatile two-sided trading can be expected.
Furthermore, the current four day rally from 2.809 to $3.373 may have been too much, two soon, putting the market in overbought territory.
Although the short-term uptrend may not be affected, the market may be ripe for a pull-back into support while investors continue to digest the weather forecasts.
At 12:30, GMT, March natural gas futures are trading $3.268 to $0.021 or -0.64%.
Forecast
The market is likely to remain underpinned by the bullish six- to 10-day and 11-15 day weather forecasts, however,
there is a warm period between the cold blasts that may encourage some light profit-taking. We could be looking at that today.
The current intraday chart pattern indicates that investors will have to decide between buying strength and playing for a breakout
over today’s intraday high at $3.373, or wait for a pullback into the support zone at $3.091 to $3.024
