Monday, November 19, 2018 6:02 AM EDT
Natural Gas Market on the Nymex faced a wild week on spectacular volatility. Friday closed 8.70% higher than the week earlier at $4.36. On Wednesday we saw a top blowing off and sold on exhaustion the very next day, forming a shooting star. Price is already 40% higher than a year ago and heating fuel 25% to 30% costlier in many areas of the U.S.
Too many conflicting reports about coming winter’s weather models and shallow underground working stocks at the end of the refill season, spur a little bit of panic besides true investing ideas. Trading volumes practically quadrupled these last few trading sessions, while majors are taking advantage of volatility and hedging for their customers and portfolios. Vigorous swings are typical while seasonality is being integrated. Many analysts out there tend to forget that the main reason Henry Hub’s futures and options are exchangeable is for producers and market participants to be able to hedge and manage risk precisely on volatile price gaps, even between different natural gas hubs.
Reports coming from London’s IEA summit confirming China’s appetite for natural gas, while global demand growth by 45% in the next decade and rising U.S. NG exports are also driving the price since the beginning of summer. Of course, U.S. production remains at a record high and can keep pace with rising demand, as coal to natural gas conversion is ongoing.
Thursday’s storage report showed a 39 Bcf build, as total stocks remain 16% lower than the 5-year average. Demand will remain very high for the coming week on a colder oscillation block across the Lower 48. Trading the short term for quite some time, we would like to see a change in trend, on the daily MACD, before selling again. Until then, we stay vigilant asking for buying signals on the short-term charts.
(Click on image to enlarge)
Disclaimer: All persons and entities contributing to the content on this website, and their representatives, agents, and affiliates are not providing investment or legal advice on this website.Nor ...
more
Disclaimer: All persons and entities contributing to the content on this website, and their representatives, agents, and affiliates are not providing investment or legal advice on this website.Nor are they making recommendations with respect to the advisability of investing in, purchasing or selling securities, nor are they rendering any advice on the basis of the specific investment situation of any particular person or organization. All information on this website is strictly informational and not to be construed as advocating, promoting or advertising registered or unregistered investments of any kind whatsoever.The sole purpose of the contents of this website, and any oral or written presentation in any way referring to or relating to this website, is to provide information which could possibly be used by a person in discussions with his/her/its investment advisors and/or investment decision makers.
Trading2day.com (hereinafter T2D) is not an investment firm, and its employees, agents or representatives are not acting as investment advisors. The investment information, including (without limitation) any investment suggestions, provided on this website are not a substitute for the advice of an investment advisor.T2D is not responsible for the accuracy of any information on this website or for reviewing the contents of the listings that are provided by the listees or any linked websites, and T2D is not responsible for any material or information contained in the linked websites or provided by listees. You should make your own independent investigation and evaluation of any possible investment or investment advice being considered.
The information provided on this website is not guaranteed to be correct, complete, or current. T2D makes no warranty, express or implied, about the accuracy or reliability of the information on this website or at any other website to which this site is linked. If you use any links to other websites, you do so at your own risk. T2D is not responsible for the contents or availability of any linked websites. These links are provided only as a convenience to you.
Any information that you send us in an e-mail message is not confidential or privileged, and T2D may use any information provided to us for any legal purpose.
T2D is not responsible for any loss, injury, claim, liability, or damage related to your use of this website or any website linked to this website, whether from errors or omissions in the content of our website or any other linked websites, from the website being down or from any other use of the website. Your use of the site is at your own risk. Day trading, short term trading, Options Trading, and Futures Trading are extremely risky undertakings. They generally are not appropriate for someone with limited capital, little or no trading experience, and/or low risk tolerance. Never execute a trade unless you can afford, and are prepared to, lose your entire investment.All trading operations involve serious risks, and you can lose your entire investment. Always perform your own due diligence and make informed decisions with the help of a licensed financial professional. We make no warranties or guarantees as to our accuracy, the profitability of any trades which are discussed, or any other guarantees or warranties of any kind.
less
How did you like this article? Let us know so we can better customize your reading experience.
