Natural Gas Outlook For This Week
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Binary options traders have a variety of factors to consider this week in building a strategy to trade energy markets. Natural gas had a positive move with a steady ascension in price last week, but persistent selling pressure continues to coalesce at the 3.
Based on this established pattern, short term traders will continue to have ample potential opportunity to fade rallies and buy on short term lows. The ability for natural gas to maintain the range we have seen established is based on three factors which traders should continue to closely monitor. Any shifts in the following three factors could signal a change in the underlying dynamics which would add volatility and potentially new directions in price.
This translates to a net boost of 91 Bcf from the previous week. Accumulated inventory stocks were Bcf less than last year at this time and 43 Bcf above the five-year average of 3, Bcf.
At 3, Bcf, total working gas is within the upper half of the the news change is afoot in binary options landscaping historical range. Inventories historically are expected to build for the next several weeks before making the normal seasonal turn to work inventories down through the winter. An extension of inventory builds at that elevated level would be bearish on overall price. It is our opinion if this scenario plays out it would be neutral to price.
Over the last three months demand has been the news change is afoot in binary options landscaping light compared to the last three years. However, last week we saw stabilization of what had been a downward trend, and even with Irma, we were relatively flat to the previous week and narrowed the gap to last year. Most importantly for the short-term price going forward, the weather forecast has turned warmer for much of the country.
For the past month generally the forecast has been cooler than average, especially across the densely populated and high consumption northeast corridor. With last weeks close just past 3. Pricing has generally traveled between 2.
With no meaningful potential for bearish data releases on the horizon for the next 3 days, price trending seems to be potentially constructive to move to retest the well-defined resistance at 3. This pattern could hold until inventory data later the news change is afoot in binary options landscaping the week. As mentioned earlier, we envision inventory data being neutral to price this week, meaning a lower probability than normal for the inventory release from the EIA to interrupt the established price trend.
A predictive mathematical model representing an ensemble of several different methods offers guidance of an incremental upward drift to price over the course of the week. Given an increased level of ambiguity swirling as the energy sector continues to heal after two major storms, there are a few potential scenarios in play. If lingering storm effects produce an inventory build above 80 bcf, or if the weather report turns unexpectedly cooler, this could neutralize any upward pressure on price and force natural gas back to sub 3.
However, our base case for this week is for an inventory build that is roughly neutral to price with stabilizing demand and warmer weather on the horizon. This scenario would support moderately higher price and a retest of the 3. Jason is a best-selling author and lifelong educator, able to take highly technical subject matter and make it accessible.
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However, the design of Nadex contracts ensures investors cannot lose more than the cost to enter the transaction. Nadex is subject to U. Fill the news change is afoot in binary options landscaping our online application in just a few minutes. Natural Gas Outlook For This Week Natural Gas Outlook For This Week The major themes of inventory, demand, and price action continue to play out in natural gas markets this week as dynamics begin to return to normal following the historic storm interruptions.
Last Week Natural gas had a positive move with a steady ascension in price last week, but persistent selling pressure continues to coalesce at the 3. Looking Ahead The ability for natural gas to maintain the range we have seen the news change is afoot in binary options landscaping is based on three factors which traders should continue to closely monitor.
Inventory - Natural Gas Inventories as determined by overall supply. Price - Influenced by the first two factors, in addition to lingering effects based on the two hurricanes that recently made landfall in the United States. Demand Over the last three months demand has been very light compared to the last three years.
Price With last weeks close just past 3. Outlook for the week Given an increased level of ambiguity swirling as the energy sector continues to heal after two major storms, there are a few potential scenarios in play. Get Started Fill out our online application in just a few minutes. Open an Account for Free Trade all the markets you love.