See ya all tomorrow. Let's see which direction it goes at 10:30AM. To me, it is neutural sentiment but slightly bearish. RSI (14) is at around 60 or so in 1 month. This tells me that if it is bearish, it will tank hard tomorrow. Where as if it comes any where around 175, it may still rally to $3.70 area in matter of couple days. I'd say stay on the side line for the time being. It is never too late to react to the EIA report. It has been somewhat predictable after EIA report announced...
But after rallying 14% from lows near $3.11/MMBtu earlier this month, traders are wary of big bets on further gains with weather forecasters calling for milder temperatures.
The National Weather Service said earlier this week it expects above-normal temperatures across a broad stretch of the eastern U.S. over the next two weeks.
On Wednesday, private forecaster Commodity Weather Group LLC predicted a "stronger warm spike" over the next six-to-ten days than in previous forecasts.
"We're relatively flat because of these mixed outlooks. There's a cold burst now, but the outlooks for next week are looking much more neutral," said Matt Smith, an analyst at Summit Energy.
Roughly half of U.S. homes use natural gas for heating, and many more are heated with electricity from gas-fired utilities, making cold weather the primary factor driving gas futures in the winter months. But analysts and traders are also looking ahead to stockpiles data from the U.S. Energy Information Administration due at 10:30 a.m. EST Thursday.
"Tomorrow's storage report will likely determine how the market finishes this week, assuming no dramatic changes in the temperature views," said Jim Ritterbusch, head of trading advisory Ritterbusch and Associates, in a note to clients.