Technical chart of natural gas

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aja57
Posts: 337
Joined: Sun May 29, 2022 10:35 pm

Technical chart of natural gas

Post by aja57 »

Since early June and through the third week of July, natural gas trading has formed a cup and seems to be in the process of forming a handle. If this holds it looks as if natural gas prices will trend toward $10.50 by late August . Dan may really have to make major adjustments to his numbers. Let's hope for the sake of investing.
dan_s
Posts: 34471
Joined: Fri Apr 23, 2010 8:22 am

Re: Technical chart of natural gas

Post by dan_s »

Trading Economics:
"On Thursday (July 28) US natural gas futures corrected to around $8.1/MMBtu as investors unwound some long positions following a massive rally that drove prices to a record level of $9.7/MMBtu earlier this week. Still, the commodity more than doubled in value in July, putting it on track for one of the best monthly performances ever, with higher domestic and international demand being the primary driver. This summer, many regions in the United States have experienced extreme heat, with demand for electricity reaching several record highs. Soaring international demand is also adding to the bullish outlook. Russia's Gazprom said it would reduce flows through the Nord Stream pipeline, citing issues with turbines, delivering only 33 million cubic meters daily, roughly 20% of its capacity, forcing European buyers to find replacements."

If ngas to surge to $9.70 in July, I think there is a good chance we see $10.50 as winter approaches and storage is more than 300 Bcf below the 5-year average.
Dan Steffens
Energy Prospectus Group
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