Natural Gas Week Ahead - Saturday, March 2

Natural Gas futures on the Nymex profited from a positive week closing at $2.85, 4.60% higher than the previous one. Thursday’s EIA storage report confirmed a 166 Bcf withdrawal in working underground stocks for the week ended February 22 which is average for this time of year.

Market fundamentals remain negative and this long anticipated bounce is to be sold at the first sign of exhaustion, slightly above $3.00. Trading volumes, however, are back to normal levels, so, the latest Daily MACD bullish crossing, might offer another positive week without having an effect on the overall bearish sentiment for the longer term this market has been  facing since the 2016 lows, when the percentage deviation from five year average was even higher in U.S. working natural gas in storage.

Dollar against major currencies and U.S. LNG export agreements must be permanently monitored as well as U.S. personal income figures and consumer spending. We cannot buy at these levels at current production output, not before a break above the $3.20 which is an area we might not see before next Fall, not without alterations in Macro figures affecting the different U.S. NG pricing hubs. We like to trade on short term charts, MACD, RSI and trading volumes offering precision in our entry decisions.


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