Natural Gas Week Ahead - Monday, September 9th

Natural Gas on the Nymex met another confident week as price spiked at $2.48 on Friday closing 8% higher than the week before. Not even the 84 Bcf, 20% higher than the five year average weekly build, confirmed by EIA on Thursday, could stop this last month’s rally, fueled by larger trading volumes ahead of the Winter’s cyclical rise in demand. Shorts were congested for many months, August alone saw a record number of them and now the market starts to feel the aura of the Winter long buying sentiment for the benefit of most of producers. This is going to be seasonal, as bearish fundamentals are alive and hard for the market to overcome. Hedging from various participants is always expected.

We like to trade the Daily and 4hour MACD so buying is what we do since mid August yet price filled a gap quickly and we need to stay careful. Range bound movements in an uptrend is what we expect for the months to come. We will sell the short term only when the Daily MACD crosses red. U.S macro figures and the Dollar Index always to be closely monitored. Daily, 4hour, 15min MACD and RSI offering precision to our entry decisions.

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