Natural Gas week ahead.

Nymex Natural Gas futures market faced a negative week as Friday’s session closed 5.25% lower than the week before at $2.46. Thursday’s storage report by EIA confirmed another 5year record level build for a week ending May 24 of 114 Bcf in working underground stocks. Daily MACD crossed negative in large trading volumes on a highly anticipated move which pressed the price further more, breaking below the critical longer term support level of $2.50. After selling rallies repeatedly we like to see a bounce to have a better opportunity to start selling again inside a range. The end of this refill season, with spectacular builds already, as well as warmer weather models across the Lower 48 will show us, in the weeks to come, if there is going to be a range bound migration for the price a little bit lower. The market remains bearish as 2016 collapse is still shaping its longer term sentiment. The resilience of the $2.25 – $2.50 until the end of summer will offer a benchmark for the months to come. U.S. Natural Gas already 17% cheaper than a year ago. U.S. macro figures and Dollar Index to be routinely monitored. Trading volumes, Daily, 4hour, 15min MACD and RSI indicating entry points.

 

 

Dimitris Kontoulis.