Infinity Insights – Volume 9, Issue 16

AT-A-GLANCE SUMMARY

Spot NYMEX natural gas held support at 2.50 and resistance at 2.63ish.

SUMMARY OF THE LAST WEEK IN CHARTS

Spot month natural gas (June) has support at 2.50 with resistance at 2.63. Calendar year 2020 has support at 2.62 with resistance 2.74. Calendar year 2021 has support at 2.62 with resistance at 2.69.For a look at our monthly market reports, visit Infinity Power Partner’s Market Overview.

RoadmapNYMEX natural gas spot month (June) finished $0.013 off at $2.567.

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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 20Calendar 2020 closed ≈$0.005 higher at $2.685.

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What’s This? – “Cal 20” 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 21Calendar 2021 ended ≈$0.01 lower at $2.635.

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What’s This? – “Cal 21” 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 held support at 2.50 and resistance at 2.63ish. The forward curve likewise remained in a tight range. Prices appear to be marking time until the next shoe drops. Supply needs infrastructure help in getting product to market. Pipelines are the answer and it takes time.Some ERCOT pundits are again concerned about adequate capacity during summer’s heat. We experienced this last year. Will there be enough concern to expect reactions? For those of you vulnerable to such concerns, consider what can be done to manage risk. This is what’s troubling about procurement beginning in the immediate future at the front of the curve. Spot futures contracts are self-liquidating, which means that positions will be subject to who has to get out. This leads to exacerbations of moves, both for you and against you.