Infinity Insights – Volume 9, Issue 42
AT-A-GLANCE SUMMARY
This week has witnessed spot NYMEX natural gas spot month (December) retreating from resistance at $2.75 to support at $2.50.
SUMMARY OF THE LAST WEEK IN CHARTS
Spot month natural gas (December) has support at 2.50 with resistance at 2.75. Calendar year 2020 has support at 2.37 with resistance 2.48. Calendar year 2021 has support at 2.42 with resistance at 2.50.For a look at our monthly market reports, visit Infinity Power Partner’s Market Overview.
RoadmapNYMEX natural gas spot month (December) closed at $2.665, off $0.023.
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.
Calendar 2020Calendar 2020 finished ≈$0.035 off at $2.475.
What’s This? – “Cal 2020” 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.
Calendar 2021Calendar 2021 settled off ≈$0.075 at $2.475
What’s This? – “Cal 2021” 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
NYMEX Natural GasThis week has witnessed spot NYMEX natural gas spot month (December) retreating from resistance at $2.75 to support at $2.50. Price action has remained between the two gaps discussed last week. We proffered that a gap, one way or another, will be filled prior to December’s expiration. That may not happen. Colder December forecasts may have traders looking beyond current weakness and prices will reflect expectations.
WHOLESALE POWER
ERCOTPrices have remained steady with natural gas decline offset by steady heat rates. Volatility has re-entered trading since lows made in September.Those who haven’t locked prices unsure as to what to do. It’s important to distinguish between trading and procurement and the different risks associated with them.PJMWinter months remain strong, following firmer heat rates. Prices await weather signals.