Natural Gas: Winter Contracts Set To Start Trading In Larger Volumes Ahead
Alexandros Yfantis | Aug 11, 2019 01:18AM ET
Nymex Natural Gas futures closed 0.16% higher than the week before amid volatility. Friday’s session closed at $2.12. Thursday’s EIA storage report confirmed another above-average injection of 55 Bcf for the week ended August 2. Price testing the lower levels of this already cut down summer range we are in after this exceptional refill season. For the last few years selling rallies on exhaustion is our main strategy inside range-bound movements as fundamentals force immediate pressure even after winter seasonality’s spikes. 2016 lows still shaping the market’s sentiment. Price got already 28% lower than a year ago. We like to see a bounce from now on and we can test buying in shorter time frame charts for immediate profit as soon as the Daily MACD crosses bullish. We feel that summer season’s low can’t be far off below from current levels in most of the pricing hubs.
Get The News You Want
Get The News You Want
The market will eventually hold the $2.00 and will start looking positive as Winter contracts will soon be trading in larger volumes. The U.S. Natural Gas market is facing negative fundamentals in the last few years, next summer forwards looking unfavorable for at this moment yet seasonality is always a good reason, for most of the market participants, to hedge on higher Winter price spike. U.S. macro figures to be closely monitored as well as the dollar against majors. Trading volumes, Daily, 4hour, 15min MACD and RSI defining our entry points.
Disclosure: None of the information or opinions expressed in this blog constitutes a solicitation for the purchase or sale of any security or other instrument. Nothing in this article constitutes investment advice and any recommendations that June be contained herein have not been based upon a consideration of the investment objectives, financial situation or particular needs of any specific recipient. Any purchase or sale activity in any securities or other instrument should be based upon your own analysis and conclusions.
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.