Infinity Insights - Volume 11, Issue 24

AT-A-GLANCE SUMMARY
Spot month NYMEX natural gas (August) traded between 3.60ish and 3.80 over the last several days.

SUMMARY OF THE LAST WEEK IN CHARTS

Spot month natural gas (August) support is 3.40 with resistance at 3.80. Calendar year 2022 finds support at 3.00 with resistance at 3.20. Calendar year 2023 has support at 2.73 with resistance at 2.95.

Roadmap
NYMEX natural gas spot month (August) settled at $3.674, $0.026 off

Calendar 2022
Calendar 2022 settled higher by ≈$0.0325 at $3.1475

Cal 2023
Calendar 2023 ended ≈$0.025 up at $2.785

OUR TAKE ON THE MARKET

NYMEX Natural Gas

Spot month NYMEX natural gas (August) traded between 3.60ish and 3.80 over the last several days. Milder weather and the market taking a pause are the likely influences. The back of the curve, however, remains on its high.

The August chart has a double top at 3.80 and double tops (and bottoms) usually hold. A third attempt at 3.80 will likely not hold should that occur. In the meantime, selloffs are buying opportunities.

WHOLESALE POWER

ERCOT
ERCOT wholesale power mirrors the pattern(s) found in natural gas. The pause in the pricing noted above is evident and will likely follow lower or higher.

PJM

Natural gas is the key to direction.