Infinity Insights – Volume 8, Issue 28
AT-A-GLANCE SUMMARY
Spot month NYMEX natural gas (September) rallied after gas storage numbers were released Thursday.
SUMMARY OF THE LAST WEEK IN CHARTS
Spot month natural gas (September) has support at 2.70 then 2.60 with resistance at2.88. Calendar year 2019 has support at 2.70 with resistance at 2.75. Calendar year 2020 has support at 2.60 with resistance at 2.65.For a look at our monthly market reports, visit Infinity Power Partner’s Market Overview.
Roadmap
NYMEX natural gas spot month (September) finished up $0.071 at $2.853.
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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 moved higher, closing at $2.7564, up ≈$0.016.
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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 finished off ≈$0.0075 at $2.62.
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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
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Spot month NYMEX natural gas (September) rallied after gas storage numbers were released Thursday. Looking at the chart below, we find the current level of storage is breaking down below the five year maximum – minimum range.The new world of natural gas supply, production, and demand is blazing new paths that need to be understood. Increased takeaway capacity is in the works as is new areas of demand.The technical picture is bearish, witnessed by the chart below:Turning to power in ERCOT, heat rates have offset gas to a large degree as seen in charts below:The net result is a buyer’s market that benefits power users.