Infinity Insights-Volume 10, Issue 26

AT-A-GLANCE SUMMARY

Every now and then, futures markets throw out a “gotcha,” giving a head fake especially confusing for us technicians.

SUMMARY OF THE LAST WEEK IN CHARTS

Spot month natural gas (August) has support at 1.70 with resistance at 1.95. Calendar year 2021 finds support at 2.60 with resistance at 2.75. Calendar year 2022 has support at 2.40 with resistance at 2.55.

Roadmap
NYMEX natural gas spot month (August) closed at $1.805, $0.261 higher
versus the close of June 26.

Calendar 2021
Calendar 2021 finished ended at $2.604, $0.024 higher versus June 26 close.

Calendar 2022
Calendar 2022 settled up by ≤$ 02 at $2.44 versus June 26 close.

OUR TAKE ON THE MARKET

NYMEX Natural Gas

Every now and then, futures markets throw out a “gotcha”, giving a head fake especially confusing for us technicians. NYMEX natural gas recently offered its version. August broke significant support (1.60) on June 25tth ending at 1.50, held this low on the 26th, and then bounced back on the 29th.

We don’t dwell on the whys but rather with the result. Prices traded down to 1.50, $.10 under support, then trade through 1.75, the previous point of good resistance and trade up to 1.95 area. It’s a bullish look regardless of how we got there. (And, yes, it’s also a double bottom)

WHOLESALE POWER

ERCOT

Prices follow natural gas and are firmer. Heat rates are moving sideways. Concern for capacity with hot weather predicted along with a firming LMP price remains issues to watch.

PJM

Prices remain steady with natural gas.

Stay Safe!