Natural Gas May June July 2026 butterfly

Overview

The NG May June July 2026 butterfly settled today at 2.2 cents May and July (wings) premium to two of the June (body)  contracts.

That is the narrowest settlement tthat the butterfly has been in 2 1/2 months.
The stochastic momentum indicator is at the extreme oversold level. Three months ago the butterfly was as low as 7 ticks. But, the 2 cent area looks to be a support zone above that.
Resistance in the immediate for the wings versus the body on a rally lies at the 4.0 and then 5.0 cent areas.

But, the butterfly in the prior 2 years rose to above 12 cents near expiration. But, also both butterflies went negative during a short period during the January calendar month.
Yet, both butterflies basically show that they held near flat except for the brief spell in January when they went negative.
Both of the past 2 years saw highs near 12 plus cents on expiration, although some resistance is evident at 10 cents as well.

Technically the very oversold condition and the at present, we believe, limited downside to near flat for the butterfly makes the purchasing of May and July versus selling 2 June contracts attractive.

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