NG! has had a historic two-year bull rally. Is the fun over for nat gas traders?
Fundamentally little has changed regarding the supply and demand of U.S nat gas despite the last few weeks of intense selling, with exception of a temporary surplus of U.S nat gas supply due to a fire in a Freeport export terminal.
Global weather remains extreme. Nat gas supply globally remains low compared to historical levels. Not to mention the effect of the added complications on the global energy trade from the war in Europe and the sanctions related to it. I think with all the uncertainties in today's world, a nat gas long position at these depressed prices (depressed on a short-term basis) at the very least provides some form of a hedge on the risk of escalation in the Russia-Ukraine war and/or worsening inflation.
Current Prices seem relatively attractive for a trade, but short-term momentum could push NG! down to the 4.54 support area. The 4.54 area would be an ideal entry for going long given that the fundamental narrative on U.S nat gas remains favorable.
This is not trading advice. Good luck!
Fundamentally little has changed regarding the supply and demand of U.S nat gas despite the last few weeks of intense selling, with exception of a temporary surplus of U.S nat gas supply due to a fire in a Freeport export terminal.
Global weather remains extreme. Nat gas supply globally remains low compared to historical levels. Not to mention the effect of the added complications on the global energy trade from the war in Europe and the sanctions related to it. I think with all the uncertainties in today's world, a nat gas long position at these depressed prices (depressed on a short-term basis) at the very least provides some form of a hedge on the risk of escalation in the Russia-Ukraine war and/or worsening inflation.
Current Prices seem relatively attractive for a trade, but short-term momentum could push NG! down to the 4.54 support area. The 4.54 area would be an ideal entry for going long given that the fundamental narrative on U.S nat gas remains favorable.
This is not trading advice. Good luck!
