Infinity Insights – Volume 9, Issue 8
AT-A-GLANCE SUMMARY
NYMEX spot month (April) held support at $2.50 and took out resistance at $2.75.
SUMMARY OF THE LAST WEEK IN CHARTS
Spot month natural gas (April) has support at 2.50 with resistance at 3.00. Calendar year 2019 has support at 2.82 with resistance 2.95. 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 (April) ended the week $0.12 higher at $2.859.
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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 finished ≈$0.1125 up at $2.95.
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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 settled ≈$0.0225 higher at $2.7625.
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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
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NYMEX spot month (April) held support at $2.50 and took out resistance at $2.75. March expired on Tuesday, the 26th, with little fanfare. Sideways appears the default direction, bounded by $3 and $2.50.With winter making its exit, weather will concern itself with CDD (cooling degree days). April is the shoulder month that transitions from drawing from storage to rebuilding storage stocks. Heat rates continue to act toppy for 2019 and 2020:with 2021 out weak (greater weakness as you go out in time):We are often asked (and questioned when we answer), “What correlates with LMP values?” We’ve found spot NYMEX natural gas is as close to a parallel as we’ve come across. Anytime you look at a cross-hedge, you’re concerning yourself with one offs and anomalies, but we offer a picture for your consideration: