Infinity Insights – Volume 8, Issue 43

AT-A-GLANCE SUMMARY

Spot NYMEX natural gas broke down from the previously discussed triangulation.

SUMMARY OF THE LAST WEEK IN CHARTS

Spot month natural gas (January) has support at 3.60ish then 3.35 with resistance at 4.00 then 4.40. Calendar year 2019 has support at 3.00 with resistance at 3.25. 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) dropped to $3.877, down $0.661.

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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 off ≈$0.020 at $3.09.

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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 was unchanged 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 broke down from the previously discussed triangulation:While one’s initial reaction might be that down is good as locking in lower prices is always good for procurement. However, the usual way forward curves react to strength in the front is for the back to fall. When the front falls, we often see the back firm up. This has to do with what goes on “under the hood” (spreads, volatility, etc.).Weather will continue to drive spot prices.

The IPP Family wishes you and yours the happiest of holiday seasons and a prosperous New Year!

The next issue of Insights will be January 11th.