Natural Gas week ahead

Nymex Natural Gas market fell by 2.65% during the week closing at $2.85 testing the lower band and finding support for another time at this level. We are looking at the same range bound price, weather is getting milder after a heat wave in the US and Thursday’s storage report showed a 78 Bcf build which pressed the price further. The Dollar index had also a negative week and trading volumes remain at season’s average levels. We remain patient, trading the short term charts. We prefer to sell the rallies rather to go long and opportunity is to be found at the upper band in the coming weeks as summer will remain hot enough to, eventually, drive demand higher. Short term bounces are of course to be bought if we can remain vigilant on the hourly chart monitoring the MACD and RSI’s turning points.

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