Infinity Insights – Volume 9, Issue 3

AT-A-GLANCE SUMMARY

Tuesday saw spot month prices for NYMEX natural gas fall through a gap that had been valid for a couple of weeks.

SUMMARY OF THE LAST WEEK IN CHARTS

Spot month natural gas (February) has support at 3.00 with resistance at 3.25 then 3.50ish. Calendar year 2019 has support at 2.90 with resistance at 3.05. Calendar year 2020 has support at 2.72 with resistance at 2.80.For a look at our monthly market reports, visit Infinity Power Partner’s Market Overview.

Roadmap

NYMEX natural gas spot month (February) closed lower at $3.178, off $0.235.

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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 fell by ≈$0.03, settling at $2.985.

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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 finished up ≈$0.015 at 2.764.

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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

Tuesday saw spot month prices for NYMEX natural gas fall through a gap that had been valid for a couple of weeks. We suspect that 75 degree temperatures witnessing folks driving convertibles with the top down was the culprit. Weather is the key with a roller coaster ride as a model. The $3 level is providing good support and colder weather is in the forecast.It’s of moment to mention the reactions in the curve when spot prices rally and drop. It usually finds the back of the curve (where you’re likely locking prices) moving inversely to the front. Knowing this tell helps timing.