Infinity Insights - Volume 10, Issue 45

AT-A-GLANCE SUMMARY

Spot month NYMEX natural gas (January) has traded up to $3.00 and down to $2.50 over the last two weeks

SUMMARY OF THE LAST WEEK IN CHARTS

Spot month natural gas (January) support is 2.45 with resistance at 2.85 then 3.15. Calendar year 2021 finds support at 2.55 with resistance at 2.85, then 3.00. Calendar year 2022 has support at 2.55 with resistance at 2.85.

Roadmap

NYMEX natural gas spot month (January) finished lower by
$0.195 at $2.575 compared to the close of November 20th.

Calendar 2021
Calendar 2021 lost ≈$0.115, closing at $2.6225.

Calendar 2022
Calendar 2022 finished at $2.608, ≤$0.065 lower than two weeks ago.

OUR TAKE ON THE MARKET

NYMEX Natural Gas

Spot month NYMEX natural gas (January) has traded up to $3.00 and down to $2.50 over the last two weeks. Calendar strips have likewise traded in a range and, likewise, is currently near the low. Technically, regarding spot January, there is support at the 2.40 to 2.50 area. Calendar strip 2021 shows support at 2.55ish as does Cal 2022.

A trader buying the current market would be bottom picking, usually an expensive exercise. Folks locking procurement (covering their inherent short position) are enjoying prices not seen since late summer and, in the case of Cal 2021, $.60 off the highs. While not a good technical buy, it is a very good intrinsic value capture.

WHOLESALE POWER

ERCOT

Power follows natural gas.

PJM

Power follows natural gas.

Stay Safe!