Infinity Insights – Volume 9, Issue 6

AT-A-GLANCE SUMMARY

NYMEX natural gas is finishing winter on a bearish note.

SUMMARY OF THE LAST WEEK IN CHARTS

Spot month natural gas (March) has support at 2.50 then 2.25 with resistance at 2.75 then 3.00. Calendar year 2019 has support at 2.70 with resistance 2.825. Calendar year 2020 has support at 2.72 with resistance at 2.77.For a look at our monthly market reports, visit Infinity Power Partner’s Market Overview.

RoadmapNYMEX natural gas spot month (March) closed at $2.625, $0.0425 higher compared to last Friday.

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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 19Calendar 2019 ended at $2.7725, up ≈$0.0425.

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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 20Calendar 2020 ended the week unchanged at $2.7225.

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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

NYMEX natural gas is finishing winter on a bearish note. $2.75 is important resistance for the spot month (March). A rally through this level would improve the technical picture and it’s not that far from current levels. However, the reverse is likewise important, i.e., should $2.50ish support fail.ERCOT power prices continue to offer economic procurement. Prices are off the lows, but not so high as to dissuade buyers. The wholesale power market is changing. Generators are getting some relief from the change in ORDC (Operating Reserve Demand Curve), pushing retail prices higher. Retail participants (loads/end users) are experiencing higher costs due to peak demand as it relates to delivery tariffs. More and more, the consultants’ space requires additional capacity to address changes.