Natural Gas week ahead.

Natural Gas on the Nymex had a negative week closing 5.50% lower than the previous one at $2.39. EIA confirmed another impressive build for a week ending September 20 of 102 Bcf in underground working stocks. We anticipated this pull back after the 22% rally of this early integration of seasonality. Warmer weather, reverse on the Daily MACD together with this report naturally had many market participants loosing some confidence and price discharging momentum. Range bound movements in an uptrend are typical for this time of year, we expected their appearance and we prefer to buy the short term till the end of Fall, trading the increase in demand for Winter Gas as well as the typical increase in trading volumes of the Winter contracts. Looking for support at $2.35, we can be more confident when the next green crossing occurs in the Daily MACD since the market’s fundamentals remain abiding bearish. 15min divergences offering precision. Dollar index and major U.S. macro figures must be closely monitored. Daily, 4hour, 15min MACD and RSI pointing entry areas.

 

 

 

Dimitris Kontoulis.