Infinity Insights – Volume 8, Issue 42
AT-A-GLANCE SUMMARY
Spot NYMEX natural gas continued to oscillate in a previously discussed triangulating formation.
SUMMARY OF THE LAST WEEK IN CHARTS
Spot month natural gas (January) has support at 4.25 then 3.90 with resistance at 5.00. Calendar year 2019 has support at 3.25 with resistance at 3.35. Calendar year 2020 has support at 2.67 with resistance at 2.73.For a look at our monthly market reports, visit Infinity Power Partner’s Market Overview.
Roadmap
NYMEX natural gas spot month (January) finished the week down $0.124 at $4.488.
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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 was up ≈$0.0775 at $3.2875.
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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 closed firmer by ≈$0.0425 at $2.71
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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 NYMEX natural gas continued to oscillate in a previously discussed triangulating formation (see below):Our interpretation of front curve price action is a market marking time. Weather will be the driver, up or down. The eventual direction will be obvious but what isn’t so obvious is what the back of the curve does. The chart below depicts the back of the curve moving higher recently.Heretofore, the back had been lower on previous dates. Does this tell us that value is overwhelming expected curve dynamics? It is certainly something to watch.