Natural Gas week ahead.

Nymex Natural Gas futures closed 0.16% higher than the week before amid volatility. Friday’s session closed at $2.12. Thursday’s EIA storage report confirmed another above average injection of 55 Bcf for the week ended August 2. Price testing the lower levels of this already cut down summer range we are in after this exceptional refill season. For the last few years selling rallies on exhaustion is our main strategy inside range bound movements as fundamentals force immediate pressure even after winter seasonality’s spikes. 2016 lows still shaping the market’s sentiment. Price got already 28% lower than a year ago. We like to see a bounce from now on and we can test buying in shorter time frame charts for immediate profit as soon as the Daily MACD crosses bullish. We feel that summer season’s low can’t be far off below from current levels in most of pricing hubs. The market will eventually hold the $2.00 and will start looking positive as Winter contracts will soon be trading in larger volumes. The U.S. Natural Gas market is facing negative fundamentals in the last few years, next summer forwards looking unfavorable for at this moment yet seasonality is always a good reason, for most of market participants, to hedge on higher Winter price spike. U.S. macro figures to be closely monitored as well as the Dollar against majors. Trading volumes, Daily, 4hour, 15min MACD and RSI defining our entry points.

 

 

 

 

Dimitris Kontoulis.