NATURAL
GAS: U.S. natural gas
futures closed within a few cents of unchanged on Monday on forecasts for
steady warmer-than-normal weather over the next two weeks, after earlier
falling to fresh lows for the year. A liquefied natural gas tanker on Sunday
docked at the Sabine Pass terminal in Louisiana, with only days to go before
the United States ships its first export cargo of seaborne gas from the Lower
48 states. Hedge funds and other big speculators last week turned bearish on
U.S. gas after warmer-than-usual forecasts. That was an about-face from the
prior week when they took positive bets for the first time since January. U.S.
and European weather models continued to point to higher-than normal
temperatures over the next two weeks, which are expected to keep heating demand
light during that time. The latest midday U.S. model ,however, pointed to less
warm weather than the earlier morning model.
Outlook: We expect Natural gas prices to trade
negative on the back of lower demand.
Above is hourly chart of Natural gas. It
suggest that prices are making lower highs and lows. However, it is expected to
bottom out in the near term. On the flip side, it has immediate support is
located at 122.60 levels.
Call: Buy above only 125.60 levels with a stop
loss placed below 122.60 levels for targets of 131.50 levels.
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