The natural gas market appears ready to enter into a
listless period of sideways, range bound trade similar to the summer of 2015.
In last summer’s trade, the market topped out 3.105 in
mid-May and then remained range bound for the following 17 weeks before selling
back off to a new low for the year in late-October.
This year’s sideways range may not last as long as summer
2015 but rallies in the market should continue to be sold with a final year end
price decline expected later this year.
The 1.611 low set in March 2016 may not be broken as
support but prices should weaken from current levels in a post-summer seasonal
decline.
A multi-year low may be forming in the natural gas market
during 2016.
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