Natural Gas market on the Nymex faced another negative week. Friday’s session closed 8% lower than previous one, at $3.04. EIA weekly storage report confirmed only a 20 Bcf withdrawal, yet price moved higher which indicates that we might have found a floor for the season. A movement inside a range bound between $2.80 and $4.00 might be the case for the coming weeks, while winter is still on, although domestic demand will not be picking up for another week, as weather will remain milder than normal across the Lower 48. LNG infrastructure works in the Gulf and export approvals, as well as coming week’s talks between U.S. and China trade negotiations have to be closely monitored. We prefer to sell rallies on exhaustion and we might have to wait to fill the gap around the $3.60. We will not buy this market for a longer period. Not before Daily MACD crosses bullish. RSI is looking neutral while range bound movements, as market participants show patience, are very probable. We still need to keep an eye on Dollar against majors, oil to gas ratio and trading volumes. Dimitris Kontoulis.
- Major Chinese indices at the end of their down trend?
- Risk on or off?