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NY Natural Gas Futures (NG) - New Pattern Forming »» Daily Summary Analysis
By: Marty Armstrong | September 19, 2020

NY Natural Gas Futures closed below our indicating ranges on the Daily level. The market closing today at 2048 is immediately trading down about 6.44% for the year from last year's settlement of 2189. As of now, this market has been rising for 2 months going into September reflecting that this has been only still a bullish reactionary trend.

The NY Natural Gas Futures has continued to make new historical highs over the course of the rally from 2019 moving into 2020. Distinctly, we have not elected any Bullish Reversals to date. Currently, the market has dropped back and is trading beneath the previous year's close warning of a potential correction in play. This is especially true since we are facing an outside reversal to the downside by penetrating the previous year's low as well.

Looking at the indicating ranges on the Daily level in the NY Natural Gas Futures, this market remains in a bearish position at this time with the overhead resistance beginning at 2275.

On the weekly level, the last important high was established the week of August 24th at 2743, which was up 9 weeks from the low made back during the week of June 22nd. We have seen the market drop sharply for the past week penetrating the previous week's low and it closed beneath that low which was 2246. This was a very bearish technical indicator warning that we have a shift in the immediate trend. We are trading below the Weekly Momentum Indicators warning that the decline is very significant and we need to pay attention to the timing and reversals.

Interestingly, the NY Natural Gas Futures has been in a bullish phase for the past 2 months since the low established back in June.

Some caution is necessary since the last high 2743 was important given we did obtain one sell signal from that event established during August. That high was still lower than the previous high established at 2905 back during November 2019. Critical support still underlies this market at 2028 and a break of that level on a monthly closing basis would warn of a further decline ahead becomes possible.

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