NYMEX Natural Gas fell during the week. Oversupply and higher temperatures in the United States always have an impact in demand shown by EIA’s weekly storage reports.
Shorter term traders came in to sell the exhaustive candles. Volumes, however, did not pick up.
We feel we reached a bottom for this rangebound trading so we must remain patient before restarting selling the same opportunity close to $2.80.
This market remains better for short term trading as it is very technical. Eventually though, the same warmer temperatures, will drive this market higher over the coming months as need for cooling will rise. Selling signs of exhaustion is what we’ve heard for some time now.
We don’t want to buy this market unless we see a change, at least, in its seasonal trend or overall sentiment and not before the $3.00 level.
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