Natural Gas week ahead.

Natural Gas futures had a positive week overall amid market volatility. Price maintained most of early week’s gains throughout the week, closing 5.80% higher than the previous one, at $2.31, despite Thursday’s EIA’s storage report which confirmed another 98 Bcf in working underground stocks, a stall figure above 5year average for a week ending June 21. This bounce was highly anticipated and short term buying, while the Daily MACD also turned bullish, was rational. We can extend this move as this new lower range bound still needs to be defined. At the time when the overall sentiment for U.S. Natural Gas market remains bearish we will find another opportunity to sell this bounce or any given rally. Range bound movements on smaller trading volumes are common during the Summer. Weather remains mild and demand moderate, yet Dog Days to follow will offer further support while we approach the end of the injection season. News coming from Osaka following agreement between China and the U.S. for new trade talks might also please U.S. Natural Gas producers and shape the price. U.S. macro figures always to be monitored, the Dollar against majors as well as trading volumes. Daily, 4hour, 15min MACD and RSI defining our entry points.




Dimitris Kontoulis.