Let's look at the weekly chart of natural gas price above. A support level (double bottom) appears to have formed at a price of 3.2 to 3.3$. Will it hold?Article in Bloomberg today: Natural Gas Gains Amid Speculation Drilling Cuts to Lift Prices
Extracts:
- Natural gas futures rose in New York amid speculation that exploration cuts will reduce production later this year, sending prices higher for the industrial and power-plant fuel.
- “We’ve shifted from the clear bearish trends we had” as the supply surplus went up, said Tim Evans, an analyst at Citi Futures Perspective in New York. “I think we’re shifting to a deficit. We have a downtrend in production already documented from February to June and July will be lower than June.”
- “You’ve got rig counts in the 600s, you’ve got peak cooling season, you’ve got peak hurricane season,” Jarvis said. “It’s not going to take much to see prices move higher.”
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We bought the natural gas ETF (UNG) at 12.2$ (see my previous post of July 9). The price stands now at 13.25$ (+ 8.6% compared to the entry price).
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