DJ Natural Gas Slips as Technical Rally Loses Steam
By Timothy Puko
NEW YORK--Natural-gas prices are inching lower Wednesday as a two-day rally largely driven by technical trading
appears to have lost steam.
Natural gas for October delivery is down 3.6 cents, or 0.9%, at $3.948 a million British thermal units on the New
York Mercantile Exchange.
The market is coming off its biggest day of gains since June, but the way those gains played out on Tuesday is a bad
sign for bulls on Wednesday, said Tom Saal, a broker at INTL FCStone Latin America in Miami. All the gains came in
about the first half hour of floor trading and then the market leveled off for the rest of the day. The price couldn't
hold above $4/mmBtu, and that will be a signal to technical traders that it is bound to fall back, Mr. Saal said.
"The bad news for them is that they bought yesterday, but there was no follow-through," he added. "That's a failure."
Physical gas for next-day delivery at the Henry Hub in Louisiana last traded at $3.94/mmBtu, compared with Tuesday's
range of $3.89-$4.03. Cash prices at the Transco Z6 hub in New York traded in a bid-ask range of $2.94-$2.99/mmBtu,
compared with Tuesday's range of $2.89 to $2.95.
Write to Timothy Puko at tim.puko@wsj.com
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(END) Dow Jones Newswires
September 10, 2014 09:08 ET (13:08 GMT)
Copyright (c) 2014 Dow Jones & Company, Inc.
091014 13:08 -- GMT
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