NATGAS: Downside to ~2.22 Then Some Upside
Natgas went on a little bit of a run however I expect further downside with no short squeeze or "new bottom" in sight for the moment. I am expecting pullback to the 2.22 area where enthusiasts can go long.
I suspect natgas will struggle to get much over 2.7 (and albeit only gradually increase) as a result of an increase in production/storage and poor(er) economic conditions. As a rule of thumb, the energy/gas/oil sector performs quite poorly during poor economic times.
Weather can play a crucial factor in short squeezes during specifically, winter months and it is expected to be colder than normal for only about 1/3-1/4 of the USA for 2019/2020 which will limit any "epic" short squeezes during the winter months.
- zSplit
I suspect natgas will struggle to get much over 2.7 (and albeit only gradually increase) as a result of an increase in production/storage and poor(er) economic conditions. As a rule of thumb, the energy/gas/oil sector performs quite poorly during poor economic times.
Weather can play a crucial factor in short squeezes during specifically, winter months and it is expected to be colder than normal for only about 1/3-1/4 of the USA for 2019/2020 which will limit any "epic" short squeezes during the winter months.
- zSplit