Three consecutive higher than expected weekly storage injections, bearish near term weather forecasts, bearish longer term weather forecasts and bearish production, there just isn't much to get bullish about in the natural gas market.
Which is exactly the mentality needed to set a long term low in the market.
Current weakness is discounting many of the bearish factors mentioned above. That is what futures markets do.
The summer 15 and winter 15-16 strips are still well above the downside measuring objectives for the triangle patterns initiated 3 weeks ago. But once these objectives are met ($2.400/MMBtu for the summer 15 strip) a long term low should be set in the market.
When it never looks like a market low will be set is when lows are set.
Get ready, get your orders placed and wait. Your patience will soon be rewarded over upcoming weeks.
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