This week NG futures traded in a range and we
saw prices moving down to three month low. The April contract of NG futures was
seen trading at 187 yesterday
As mentioned last Thursday, prices touch 187
this week. This week based on the EIA Storage report and weather forecast, I
would suggest sell on rise strategy.
 |
| Natural Gas Price Chart - Generatebucks |
Weather forecast
According to NatGasWeather for March 28 to
April 3, mild conditions would build. It is expected to get very warm in some
parts of US thus generating demand. Coming week is expected to be unsettled. We
could expect warmer and colder temperatures. National demand would be moderate
to high based on the production.
EIA storage report released today
Analyst were expecting lighter withdrawals. Bloomberg
estimated a median prediction for a 41 Bcf withdrawal for the period ended
March 22. The range of guesses is minus 29 to minus 54.
The ICE EIA financial weekly index futures
settled at a withdrawal of 32 Bcf, while IAF Advisors analyst Kyle Cooper
called for a 33 Bcf pull. Natural Gas Intelligence is calling for a withdrawal
of 40 Bcf.
Working gas in storage was 1,107 Bcf as of
Friday, March 22, 2019, according to EIA estimates. This represents a net
decrease of 36 Bcf from the previous week. Read more here
Natural Gas price forecast
I am expecting market to trade in range but I would
not advise anyone to buy in this market. Sell on rise should be followed. This
is not the market to buy.
A trader is advised to follow sell on rise
strategy. I would suggest to create short positions around 192-193 for short
term target of 185 with stop loss of 196.
Positional traders should average their
positions and stick to their position. I expect NG prices to trade around 180
in few weeks.
0 Comments
Leave your comments below.