Natural Gas Week Ahead - Monday, Nov. 5

Nymex Natural Gas market ended 3% higher than the week earlier, closing at $3.28. Trading volumes remain large enough and volatility is always expected at this time of year.

Thursday’s storage report confirmed a 48 Bcf build and the refill season will offer another few injections of this size in the coming weeks. Traditionally, traders remain patient at this point, while there are conflicting reports out there, different banks and analyst views, even trying to convince the main street for their different investment programs based on the commodity’s price.

Weather models still looking raw about the coming winter, while underground stocks will look shallow at the end of the refill season, yet, the price is already 10% higher than the year before. 2016 lows are always in the mind of many industry experts and fundamentals about larger LNG exports are in place since the beginning of the year without major effect in price as production keeps growing.

Coming week’s demand will stay moderate, price remains inside the range-bound, we would like to see another rally to have the opportunity to sell it again. A daily MACD bullish signal might as well be developed at the end of the coming week. RSI might be looking overbought close to 60.00.

(Click on image to enlarge)

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William K. 6 years ago Member's comment

Lower natural gas prices benefit a much larger segment of the population than those who speculate on the prices rising. So it is very difficult indeed to feel even a shred of sympathy to those who are not profiting so very much.