Infinity Insights-Volume 10, Issue 16

AT-A-GLANCE SUMMARY

Spot month NYMEX natural gas continues to trade between 1.90s and 1.60s.

SUMMARY OF THE LAST WEEK IN CHARTS

Spot month natural gas (May) has support at 1.70 then 1.60 with resistance at 1.90. Calendar year 2021 finds support at 2.50 with resistance at 2.75. Calendar year 2022 has support at 2.35 with resistance at 2.52.RoadmapNYMEX natural gas spot month (May) close was off by $0.007at $1.746 compared to last Friday’s close.Calendar 2021Calendar 2021 settled ≤$0.075 better at $2.70.Calendar 2022Calendar 2022 was up by ≤$0.0265 at $2.4985.

OUR TAKE ON THE MARKET

NYMEX Natural Gas

Spot month NYMEX natural gas continues to trade between 1.90s and 1.60s. Drivers appear to be traders scalping the market in the direction of the day. After January 2021, trading is quiet but steady.Price action points to a market making a bottom. We approach price strategies from that perspective.

WHOLESALE POWER

ERCOT

Heat rates are defensive. Power prices are steady. Take cues from natural gas.PJMNatural gas continues to guide power prices.An ending note…On April 20th, expiring spot-month May WTI Crude Oil traded in negative numbers. We have never seen a negative number for any exchange-listed commodity futures contract. Admittedly, things are crazy and stressed, but a negative number? Implications are not being discussed but probably should be. The Commercial Clearing House and exchange are where answers would be found. This is something to watch.