Natural Gas week ahead.

Natural Gas futures on the Nymex remained flat during the week closing 0.40% lower than the week before at $2.65. A build of 25 Bcf was confirmed on Thursday after a reclassification made by the EIA which put pressure instantly and turned the week slightly negative. Trading volumes picked up and it seems like many market participants are gearing up for a more aggressive move. Weather will remain mild and normal for this time of season for most of the Lower 48. Next week’s demand is expected staying at moderate levels. We like to sell rallies on first sign of exhaustion ,on shorter term charts, as fundamentals remain bearish for this market and, without any spectacular differentiation occurring soon, we can’t expect any break out before Fall. We do not want to buy the longer term, not before we see a break above the $3.20 as range bound movements will lead the months to come while we enter the underground stock’s refill season. Many spot pricing hubs already at record low prices. Daily, 4hour, 15min MACD and RSI defining our entry decisions.

 

Dimitris Kontoulis.