Infinity Insights – Volume 8, Issue 32

AT-A-GLANCE SUMMARY

NYMEX natural gas spot month (October) moved lower over the last two weeks.

SUMMARY OF THE LAST WEEK IN CHARTS

Spot month natural gas (October) has support at 2.75 then 2.70 with resistance at 2.88... Calendar year 2019 has support at 2.58 with resistance at 2.76. Calendar year 2020 has support at 2.60 with resistance at 2.67.For a look at our monthly market reports, visit Infinity Power Partner’s Market Overview.

Roadmap

NYMEX natural gas spot month (October) moved down, settling at $2.776, off $0.137.

rd1

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 finished at $2.70, down ≈$0.11.

c19

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 closed ≈$0.05 lower at $2.60.

c20

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

NYMEX natural gas spot month (October) moved lower over the last two weeks. The balance of the curve likewise was weaker. Lack of weather demand appears to be the catalyst, allowing prices to near long term support in the 2.70s. Indicators point to the market becoming oversold.Turning to ERCOT power prices, we offer the following tables denoting the highest and lowest values for natural gas, heat rates, and wholesale power (heat rates and natural gas likely didn’t hit highs and lows simultaneously).

values

These serve to remind us how near to all- time lows values currently are. Good value is offered.