Natural Gas Week Ahead - Sunday, January 27th

Nymex Natural Gas futures market had a volatile week. Friday session closed 9% lower than the previous one, at $3.17. Only Thursday’s weekly storage report seemed to give a positive spin on 163 Bcf withdrawal for the week ended January 18. This number, though, stands very close to the 5year average for the same week and much lower than last year’s draw. Price struggles to maintain gains, as all rallies following larger trading volumes and colder weather, are sold rather quickly. US production at record high levels, as well as abundant proved reserves, put pressure, on the long run, for investing ideas of many market participants. Working underground stocks remain 11% lower than the 5year average while price is already 9% lower than a year before, therefore, we still need to respect a certain floor, around the $3.00 before trading the Spring contracts to larger volumes. Cold weather will persist in the Northeast of the US for another week and demand will increase considerably. We would like to see a bounce which is very probable inside this range we are in, before start selling again on first sign of exhaustion. MACD and RSI helping our entry decisions.

http://trading2day.com/wp-content/uploads/2019/01/nat-gas-chart-28.1.19.jpg

Disclaimer: All persons and entities contributing to the content on this website, and their representatives, agents, and affiliates are not providing investment or legal advice on this website.Nor ...

more
How did you like this article? Let us know so we can better customize your reading experience. Users' ratings are only visible to themselves.

Comments

Leave a comment to automatically be entered into our contest to win a free Echo Show.