Natural Gas Futures Suggest a Mild Winter Ahead

The futures market for natural gas is signaling that this winter may be milder than usual. One trade, in particular, is betting on a relatively mild winter.

Natural Gas (NG) futures have been trading at around $6 per million British thermal units (MMBtu). Some analysts believe that if the winter turns out to be warmer than expected, natural gas prices could drop significantly.

This trade on natural gas is based on a technical indicator known as the Moving Average Convergence Divergence (MACD) strategy. According to this strategy, when the MACD line crosses above the signal line, it can indicate a buy opportunity in the market.