Natural Gas Update
August 17, 2012 3 Comments
Natural gas prices continued their downward trend over the past week as weather across the nation has cooled off. Last month’s heat wave caused strong demand for the energy source as more Americans cooled their homes with air conditioning, chipping away natural gas reserves. $2.70 is a technical support and I believe that this will be broken soon. I am bearish on natural gas as I believe that $2.00 is a magnet for price action if strange weather exists. The rest of August and September will be tell tails for price action over the winter, just how March’s warm temperatures were a sign for July’s heat wave.
The coming week is expected to be cool along the Eastern Seaboard indicating restrained price bullish movement in the short-term.
The Energy Information Administration natural gas storage number released yesterday reported 20 billion cubic feet of natural gas in underground storage. Analysts were expecting 24 billion, the same as last week’s report.
marketsreaction 
What are your thoughts on oil?
I would day trade oil using the Ichimoku cloud using 5-minute candlesticks. Long term I am not sure. I think that tensions in the Middle East could lead to an unexpected spike.
Yes, I think a war there is inevitable. We could do so much here in the US to get closer to self sufficency.