Natural Gas Week Ahead - Sunday, Jan. 13

The Natural Gas market on the Nymex had a volatile week. Friday's session closed at $3.10, 3.56% higher than the previous one. Strong cold shots are finally expected in the Northeast and demand is anticipated to rise to moderate levels for the coming week.

Thursday’s EIA weekly storage report confirmed an 87 Bcf withdrawal after a reclassification from working gas to base gas, which is considered average. Part of the trade talks between US and China concluded and a statement of the US delegation confirmed the focus of China to purchase considerable amount of US energy products without giving further clarification.

The next 90 days are crucial for US NG producers, as more export agreements will be defined and come in effect with various importers. This might be the last chance for market participants to see another price pop up, as colder weather than normal is back in most of the Lower 48. $3.25 will offer us a daily MACD crossing into bullish territory and we could see higher prices for next couple of weeks following this move. We only buy the very short term and we still look to sell an eventual rally filling a gap, on the first sign of exhaustion. Range bound movements are very probable at this time of year, before the start of gloomily trading the Spring contracts. Daily, 4hour, 15min MACD and RSI are indicating our entries and stops.

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