Natural Gas week ahead

Natural Gas market on the Nymex bounced during the week, closing 2% higher than the week before, at $2.79. Thursday’s storage report had a bullish effect on the price, as only a small build of 24 Bcf in underground stocks was confirmed. We are looking at a range bound price and this bounce is welcome, as we look for opportunity to sell rallies on resistance just above. We will come in at any sign of exhaustion and we won’t buy the longer term unless we see a break above the $3.10. We are still looking for confirmation of a bearish sentiment and trend, late in August, as trading volumes will get smaller and temperatures will become milder for most parts of US. Oversupply, for the longer term, seems not that much of an issue, in terms of present underground stocks, as we remain well under the 5 year average. New rigs and future projects, however, are. Daily, 4Hour and 15min MACD and RSI offering us precise guidance.

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