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Natural Gas Yawns At Inventory Build

Published 04/16/2015, 03:55 PM
Updated 07/09/2023, 06:31 AM

Once again, a disappointing energy report put the kabash on natural gas prices Thursday morning.

That said, purely from a trading perspective -- putting aside the obvious oversupply and absence of any bullish stimuli from Mother Nature -- let's notice that the natural gas reaction to the bearish news has not been all that bearish. At least not yet.

In fact, if you had sold short natural gas when it broke below the Jan.-Apr. range on April 9, you would be under water on the trade -- even after Thursday's supposedly bearish inventory report.

What does that tell us?

Just maybe -- MAYBE-- natural gas selling pressure is exhausted after its relentless 14-month bear phase from 6.49 to 2.48?

4 Hour Natural Gas

Latest comments

Every comodity has its "natural price". It can drop below but not to much, because production shrink. And NG is already deep in this zone. US NG prices are aprox. 85$/1000 m3 and world prices are between 300-400$.
If you can outline a fart's boundaries than you can trade natgas successfully ...
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