Natural Gas Week Ahead - Sunday, Jan. 20

The Natural Gas market on the Nymex had a positive week overall as price moved inside the latest range to retain gains. Friday's session closed 10% higher than previous week at $3.42.

Monday started with a long awaited daily MACD bullish crossing at $3.25 and price moved aggressively higher more than 15% on larger trading volumes, as colder weather came back in most of the Lower 48 and Canada.

Thursday’s EIA weekly storage report confirmed an 81 Bcf withdrawal for the week ending January 11, which is average for this time of year. Price initially fell after this, before maintaining most of the week’s gains later on Friday.

The rally is not entirely sold and Monday’s shooting star, which is of course a negative sign for the longer term, especially while record high production is keeping pace with demand, might have price holding a floor for another couple of weeks, on higher demand, larger trading volumes and even more cold weather coming from the Arctic, offering hedging opportunities to market participants.

Movements inside the $2.80 – $4.00 range bound is what we anticipate before trading the Spring season, so selling the same rallies in the coming weeks while trading the short term is what we can expect best. The 4hour MACD and 15min reverse will again show our entry and stop areas. The RSI looking neutral.

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