Infinity Power Partners - Volume 11, Issue 35

AT-A-GLANCE SUMMARY

NYMEX natural gas sold off this week, initially as it was over-bought and accelerated by lack of weather demand.

SUMMARY OF THE LAST WEEK IN CHARTS

Spot month natural gas (November) support is 4.80 with resistance at 5.40.
Calendar year 2022 finds support at 3.90 with resistance at 4.30. Calendar year 2023 has support at 3.25 with resistance at 3.50.

Roadmap

NYMEX natural gas spot month (November) finished $0.054 higher at $5.20
compared to last Friday’s Close.

Calendar 2022

Calendar 2022 closed ≈$0.1575 up at $4.21.

Cal 2023

Calendar 2023 settled ≈$0.14 better at $3.395.

OUR TAKE ON THE MARKET

NYMEX Natural Gas

NYMEX natural gas sold off this week, initially as it was over-bought and accelerated by lack of weather demand. The degree and severity of the selloff is seen in the “Widow Maker” (March/April Spread):

Note that the moves were dramatic and why it’s called “Widow Maker.”
 
As November moves into spot month, support is around 4.75. Volatility has increased as winter weather becomes key in direction. Technically, the market remains in a bullish configuration.

WHOLESALE POWER

ERCOT

Prices have pulled back to an extent and offer value compared to the recent bulge.

PJM

Prices continue to mirror natural gas.