Chopped

Caught between longer-term bearish fundamental market conditions and shorter-term bullish technical factors, the natural gas futures market chopped sideways to higher in relatively light trading activity Tuesday. And while neither side could claim the day as a victory, the market finished on a positive note, with the June contract ekeing out a 3-cent advance to close at $6.476.

After dropping 13 cents Monday morning to carve out its lowest point in nearly three months, the natural gas futures market stabilized and chopped sideways to higher in the trading session as buyers stepped in at what they view as bargain price levels. Though it was initially hit hardest by the selling, the June contract also received the biggest buying boost as traders lifted it off its $6.405 low. The prompt month closed at $6.446, down 9 cents for the session.

After soaring to new 2005 highs following the release of fresh storage data (95 Bcf withdrawal) on Thursday, the natural gas futures market chopped lower late in the session to end the day on a negative note. At $7.238, the April contract finished the session more than 14 cents below its $7.38 top but still up 4.6 cents on the day. Looking ahead, market watchers wonder whether the recent gains in both natural gas and crude futures can be sustained in the short to medium term.

In what was one of the quietest sessions in recent memory, the natural gas futures market chopped mostly sideways Tuesday as neither bull nor bear was able to influence a move in their favor. The March contract closed at $6.316, down a half cent for the session and near the middle of its $6.26-40 trading range on the day.

In what several traders noted was a quiet session as far as Thursdays go, natural gas futures chopped sideways yesterday as storage-related selling and weather-related buying were evenly matched.

With little in the way of fresh fundamental information Friday, the natural gas futures market chopped sideways within a narrow 8.5-cent trading range. Nearly equal amounts of bargain buying and fund selling were seen in the August contract, which followed Thursday’s impressive bounce with a more subdued, 2.8-cent decline to finish the week at $5.022. At 49,295, estimated volume was evidence of the lackluster trading Friday.

With few fresh fundamental factors on which to trade, natural gas futures prices chopped lower Tuesday in agreement with increasingly bearish technical factors. The May contract was hardest hit by the selling, dipping 6.8 cents to close at $5.645. After two days of quiet trading, activity picked up on Tuesday and added credence to the down move. Estimated volume was 67,340.

With little fresh news on which to trade, natural gas futures chopped sideways Friday in light pre-weekend book squaring. Bears were content that Thursday’s gains did not carry over into Friday’s trading. Bulls, meanwhile, rested on their 47-cent gain for the week. May finished at $5.411, down a trifling 0.8 cents for the session.

Buoyed by concerns over two possible disturbances in the Caribbean Sea and supported by continued technical bullishness, natural gas futures chopped higher Monday as scale-up commercial selling was supported by moderate fund buying. At $3.507, the October contract was up 4 cents for the session and within striking distance of its four-month high at $3.685. With some local traders out in observance of Yom Kippur, volume was weak in the pit, with estimated volume only registering just 66,195 contracts.