Bullish phase under threat as NYMEX Gas stays range-bound

In the midst of a 14 day bullish trend, Yesterday's session put the brakes on the ongoing uptrend — without a clear direction, NYMEX Gas closed at $2.59 per MMBtu while ranging between $2.56 and $2.69.

Uncertainty around Natural Gas is reflected by published market data as United States CFTC Crude Oil speculative net positions released yesterday at 20:30 UTC with a figure of 191,500, while the previous figure was 216,600. United States CFTC Gold speculative net positions came out at 179,800. Fresh CFTC Nasdaq 100 speculative net positions data from United States came out at 20,000.

Trend and momentum analysis indicates that the Commodity Channel Index (CCI) indicator is above +100, meaning the market price is unusually high compared to the rolling average. Yesterday's price action generated a Japanese candlestick pattern showing 'Bearish Harami' is a candlestick chart indicator used for detecting reversals within a prevailing bull trend. It is generally indicated by a small price decrease that's contained within a broader upward price movement and is commonly associated with a bullish trend coming to an end. Analysis based on the asset volatility indicates that US Natural Gas's upper Bollinger Band® is at $2.61, suggesting that a downward move may follow. Chart analysis suggests Natural Gas is approaching key support, around 5 cents away from $2.54. Dipping below could indicate further losses are ahead while a failure to break below this level is likely to be seen positively by market bulls.

Notwithstanding NYMEX Gas's appreciation in recent days, the technical outlook suggests its bullish run is now fading.

While NYMEX Gas was pretty flat yesterday, mixed performances were seen elsewhere as Heating Oil lost 1.5% yesterday and closed at $2.4.

Having set a significant high of $9.68 8 months ago, Natural Gas is trading 73.22% lower.