Infinity Insights-Volume 10, Issue 25

AT-A-GLANCE SUMMARY

NYMEX natural gas broke what had been material support on Thursday.

SUMMARY OF THE LAST WEEK IN CHARTS

Spot month natural gas (August) has support at 1.50 with resistance at 1.75. Calendar year 2021 finds support at 2.50 with resistance at 2.75. Calendar year 2022 has support at 2.40 with resistance at 2.55.RoadmapNYMEX natural gas spot month (August) was lower by $0.204at $1.544 versus last Friday’s close.

Calendar 2021

Calendar 2021 settled at $2.58, off ≤$0.0675.

Calendar 2022Calendar 2022 closed down by ≤$ 0.025 at $2.42.

OUR TAKE ON THE MARKET

NYMEX Natural Gas

NYMEX natural gas broke what had been material support on Thursday. Volume was large in August and contract and open interest didn’t change. Balance of 2020 isn't surprising as it remains without directional leadership. It looks sloppy and begs the question, “what’s going to hold it up?”

Cal 2021, likewise, raises concerns, breaking the 2.60 support that has held. 2.50 is the next support. The value offered is low but might go lower.

WHOLESALE POWER

ERCOTPrices are softer with natural gas falling but not by much. Value is offered. The weather is forecasted to turn hot in July and August.PJMPrices continue to follow natural gas.