Natural Gas week ahead.

Natural Gas market on the Nymex had another positive week while the first green month appears after the post Winter exhaustion. Friday’s session closed 6% higher than the week before at $2.28. We anticipated this bounce and we look forward to hold any long positions as Fall is still young while October contacts are being traded in decent volumes. Thursday’s EIA weekly storage report confirmed a 60 Bcf build for week ended August 23. This impressive injection season being prolonged while the market is facing the same negative fundamentals of the last few years, mainly because of the abundance of the U.S. proved reserves, but this is not a time to be bearish as a floor appeared during Dog Days and seasonality is about to affect cyclical demand. Even from mid Summer we liked to see price levels shallow to the $2.50 major long term support. Range bound movements are very likely in an uptrend for the months to come, we can trade both plays in shorter period charts till the end of Winter while paying attention to the U.S. macro figures. More aggressive spikes on larger trading volumes are always expected as well as hedging from most of market participants. Busy Hurricane season ahead of us, Dorian won’t hit major production or pipeline infrastructure. Daily, 4-hour, 15min MACD and RSI pointing entry areas.

 

Dimitris Kontoulis.