Natural Gas week ahead.

Natural Gas futures on the Nymex gained some momentum during the week, closing 2.40% higher that the week before at $2.58. A long anticipated bounce is expected and we will have to see if the market is going to punish it again in the next couple of weeks. Of course this is the most likely scenario on fundamentals as we hit the floor of a longer term range bound between $2.50 and $3.00. EIA confirmed another large build of 92 Bcf in underground stocks which is about average for a week ending April 19. The U.S. natural market looks bearish for quite some time and we want to sell any rallies as range bound movements are going to be likely for the foreseeable future even on lower trading volumes. Weather will be warmer than normal for most of the Lower 48 for the week ahead. 2016 lows still shaping this market which many of its participants would like to operate on competitive pricing. U.S. Natural Gas for electricity generation is facing soaring competition from Renewable sources and as the industry operates at high record production as well as proved reserves, only new agreements for NG exports will offer a positive spin in the months to come. Some of the producers hurt already at these levels so short time hedging is constantly expected and can offer us fresh selling opportunities. Daily, 4hour, 15min MACD and RSI defining our entry points.

 

 

Dimitris Kontoulis.