Natural Gas market rallied earlier this week but sellers
jumped in mid-week. Natural Gas April contract was seen trading at 189.50
earlier this week and closed at 184 yesterday.
#nat gas investing
Looking at international markets, Natural Gas futures have
been trading in a range from $2.50 to $2.70 for quite some time.
Natural Gas Futures forming a shooting star - Generatebucks.com |
I think we can eventually see this market trading at $2.25
which would extremely oversold positions.
Natural Gas EIA storage report
Analyzing the EIA storage report, natural gas in U.S.
storage facilities increased 25 Bcf to 1.155 Bcf in the week-ending April 5.
The injection was smaller than the consensus estimates, which called for a 33
Bcf injection.
Looking at the short-term weather, natural demand could be a
slight moderate to low. We can expect sellers taking over the market coming
week.
We have been trading around this point for some time now and
these are over sold levels but we might see a bit more downside before we see a
rally.
#nat gas investing
Trading strategy
Natural Gas futures are weak and I don’t see a big rally.
Every rally will be small due to short covering. I expect MCX natural Gas
futures to follow a downside momentum.
We can expect short rallies this 187-189 in coming week if
any but ultimately, we can prices to touch 180, 175 in near term
I also don’t see much upside here since when it starts
getting a little warm, we can expect buyers to jump in
At this point, it would be quite safe for sellers to trade
at any rallies, so if you are a sellers 187-189 would be a great rate for you
to trade.
#nat gas investing
#nat gas investing
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