The storage number came in on the high side of pre-report estimates at 97 Bcf in comparison to the range of analysts' estimates of between 81-96 Bcf, averaging 92 Bcf.
The 1 minute chart above shows how the spot October 14 contract traded following release of the report.
It fell to a 3.823 low immediately after the release of the report..
And 6 minutes later it was trading at a 3.906 high ending the day at 3.971, up .060.
The market may have already discounted today's high storage injection. And it may sell back off from lower-4.000 resistance if reached as it has over the past 10 weeks.
But today's rally higher following release of a decidedly bearish weekly storage number may be a signal the focus is now shifting toward something else.
And today's rally could also be a first indication the market trend is finally turning higher ahead of winter after 10 weeks of sideways trade.
Whether or not the market can extend today's bullish gains will be a good sign regarding the strength of today's rally. Failure tomorrow or Monday to move higher will likely lead to new price lows for natural gas prices before a final seasonal low is set.
But if today's rally can continue, the natural gas market could be ready for a seasonal move back higher into early-2015.
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