Infinity Insights – Volume 8, Issue 10

AT-A-GLANCE SUMMARY

Spot NYMEX natural gas (April) found selling at the 2.80 level.

SUMMARY OF THE LAST WEEK IN CHARTS

Spot month natural gas (April) has support at 2.50 with resistance at 2.80 then 2.90 Calendar year 2019 has support at 2.76 with resistance at 2.85. Calendar year 2020 has support at 2.74 with resistance at 2.83.For a look at our monthly market reports, visit Infinity Power Partner’s Market Overview.

Roadmap

NYMEX natural gas spot month (April) finished the week down $0.044 at $2688.

1

What’s This? – The “Roadmap” is the price action chart depicting the NYMEX natural gas spot month. It’s important because it is essentially the trading community’s market sentiment.

Cal 19

Calendar 2019 closed ≈$0.0025 lower at $2.819.

2

What’s This? – “Cal 19” is the first complete 12-month strip. It gives you a visual of price action and provides a reference point for our take on the market.

Cal 20

Calendar 2020 was up ≈$0.0125, settling at $2.763.

3

What’s This? – “Cal 20” is the second complete 12-month strip. It gives you a visual of price action and provides a reference point for our take on the market.

OUR TAKE ON THE MARKET

Spot NYMEX natural gas (April) found selling at the 2.80 level. The forward curve through January 2019 is contangoed (back premium front). We suspect that the premiums will drift lower to the then spot month price levels over time. There doesn’t seem to be a bullish summer argument for natural gas (yet there’s a compelling bull argument for ERCOT generation capacity for this summer). Our conclusion is that power will stay flat to higher and natural gas will be flat to lower.