Infinity Insights – Volume 9, Issue 26

AT-A-GLANCE SUMMARY

Spot month NYMEX natural gas (September) traded higher with extremely hot weather and then collapsed when it went away.

SUMMARY OF THE LAST WEEK IN CHARTS

Spot month natural gas (September) has support at 2.15, with resistance at 2.32. Calendar year 2020 has support at 2.40 with resistance 2.50. Calendar year 2021 has support at 2.50 with resistance at 2.57.For a look at our monthly market reports, visit Infinity Power Partner’s Market Overview.

RoadmapNYMEX natural gas spot month (September) finished the week weaker by $0.078 at $2.15.

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 lower by ≈$0.0375 at $2.455.

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 closed at ≈$2.5375, settling $0.0175 lower.

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 month NYMEX natural gas (September) traded higher with extremely hot weather and then collapsed when it went away. Forgive stating the obvious, but it goes to the meat of price action. Prices are at technical support, market is oversold, and is currently at Bollinger Band lower support.We note that the market trades lower without weather support. Conventional wisdom would suggest that, with a robust economy and particularly with a China trade deal, prices would stabilize. We wonder. With two months to go with summer, prices on their lows, and a less than rosy global economy, $1.xx handle for spot NYMEX natural gas prices is less than $0.16 away. Time will tell.