Natural Gas week ahead.

Natural Gas futures contracts on the Nymex relished a positive week overall, amid market volatility. Friday’s session saw the price closing 4.87% higher than the previous one at $2.39. Wednesday’s EIA storage report seasoned 89 Bcf build which is close to average for a week ending June 28. Even while this figure is still 11% higher than a year ago, the price moved aggressively higher in this anticipated bounce to fill a gap, since Daily technicals are bullish for the shorter term following the Daily MACD bullish crossing two weeks ago while we finally approach warmer days in most of the Lower 48 and Canada. We extended this move significantly last couple of weeks and as a new lower range bound price is being formed we will stay alarmed to sell yet again as opportunity will crop up while the market still faces bearish fundamentals and Dog Days can only offer half of Winter’s demand for electricity generation for cooling. 13 Gas rigs are offline since last year yet record production is keeping pace with demand. U.S. macro figures always to be closely monitored as well as the Dollar Index. Trading volumes, Daily, 4-hour, 15min MACD and RSI defining our entry decisions.

 

 

 

Dimitris Kontoulis.