Breaking News
0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Natural Gas Support At $3.20 Affirms The Uptrend

By Dimitris KontoulisCommoditiesJun 13, 2021 07:32AM ET
www.investing.com/analysis/natural-gas-support-at-320-affirms-the-uptrend-200585767
Natural Gas Support At $3.20 Affirms The Uptrend
By Dimitris Kontoulis   |  Jun 13, 2021 07:32AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 

Natural gas futures on the Nymex rallied during the week before closing 6.1% higher than the previous one at $3.28 on Friday. EIA confirmed on Thursday a build of 98 Bcf in working underground stocks for the week ended June 4. Inventory is currently at 2,411 Bcf 13.7% lower y/y, 2.2% below the 5-year average. The refill season is still young and this is the first week where percentages have slightly come down.

The market wants to breakout in uptrend on seasonality, and a support level around $3.20 - $3.30 will affirm most of market participants sentiment about the following months. The summer demand will offer a nice benchmark for the winter contracts. We are trading directionally towards a future seasonal ceiling, we feel that $4.00 has to be attainable until later in Autumn but we remain very cautious about the fundamentals of this market. We are taking only one support level at a time while buying the dips. Chances are that the same ranges will offer multiple times the profit on range bound behavior. Any spike will just add to our trading idea faster. The Autumn contracts of U.S. Natural Gas are very often contributing to hedging activity by various asset managers on end-of-year trading.

Inflation is starting to hit the economy while the recovery is ongoing. We have to respect OPEC+ desire for another expensive oil era. They did not feel very well last year. The first non profitable year in the history of oil and gas. Aramco (SE:2222) the world's largest oil company is giving less than 3% per year on its 5-year bond to investors, this is really stingy. Utilities and customers around the world, importing countries it seems they will have to compensate the oil cartel for the year of Covid. Having said that, the U.S. shale oil-associated gas will remain very much alive following last year's consolidation, so this is another reason for this winter season's uptrend not to be very aggressive. U.S. macro data and the Dollar Index to be routinely monitored.

Daily, 4hour, 15min MACD and RSI are pointing to entry areas.
Nat Gas 4-H Chart
Nat Gas 4-H Chart

Natural Gas Support At $3.20 Affirms The Uptrend
 

Related Articles

Tim Knight
Oil Slips Lower By Tim Knight - Aug 02, 2021 1

Picture perfect! Oil has been slapped away from its broken trendline. Resistance has done its job. United States Oil Fund, LP (NYSE:USO): The energy fund Energy Select Sector...

Natural Gas Support At $3.20 Affirms The Uptrend

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email