It is exceeding difficult to attempt in predicting when a price high or low has been set in a particular market.
However, price action over the past three days in the natural gas market is indicative of a market low having been set in this week’s trade.
The reason recent trade is indicative of a low having been set is the sharp rise in volume seen during this time frame.
Volume over the past three days has spiked sharply higher which is typical near a market high or low.
While setbacks are to be expected, there is a good possibility that a second and final seasonal low for 2014 has been set in the market.
Whether or not a final low has been posted, it is important to complete winter 14-15 coverage as soon as possible.
Last year’s winter rally lifted the spot contract price to $6.490 in February.
While the market may not revisit last year’s winter highs, the potential for another volatile winter remains strong.
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