Natural Gas Week Ahead - Monday, October 7th

Natural Gas on the Nymex fell by 2% during the week closing at $2.35 on Friday. Early sessions saw price pulled back further more before forming a hammer after Thursday’s EIA storage report. A 112 Bcf in working underground stocks confirmed ejected for the week ended September 27, a very large build for this time of year, yet price returned to green which is a bullish sign for the coming weeks.

We anticipated this bounce while seasonality already being integrated and we like to buy early any positive momentum. We will feel even more confident when the Daily MACD also crosses bullish. Range bound movements in an uptrend is what we expect for another couple of months despite the very negative fundamentals the market is facing for quite a long time.

Colder weather for most of the Lower 48 and smaller underground stock builds in the the coming weeks will be enough to offer the highly anticipated seasonal support for most of producers. Latest U.S. macro figures seem also to support this direction, Daily, 4hour, 15min MACD and RSI offering precision to our entry decisions.

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