ENERGY PRICES WERE MIXED ON MONDAY… liquids markets tanked overnight in the wake of OPEC’s decision, but then rallied throughout yesterday’s pit session. It was a bullish reaction. Meanwhile, there is nothing bullish about the NYMEX natural gas market, yesterday the spot contract cratered towards a life-of-contract low.
Natural Gas Daily Bias - Bearish: Henry Hub gas bulls continue to roll craps. The spot NYMEX Henry Hub contract has now closed below the $4 critical point of reference for seven straight sessions. That’s seven the hard way for the bulls. On Monday the market opened 14 ticks above last Thursday’s 3.900 pivot-low, but then soon faded. The contract finished the session down 2% and within 34 ticks of our 3.816 inflection point.
As far as today goes, offers through trendline support at 3.784 alerts to follow through momentum towards our 3.736 inflection point. We will look for further weakness below here towards our 3.622 intraday. On the other hand, a rebound through 3.900 cautions for further corrective thrust towards our 3.964 inflection point. Above here we will look for bids towards our 4.078 intraday.
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Stephen Schork is the Editor of, "The Schork Report"and has more than 17 years experience in physical commodity and derivatives trading, risk systems modeling and structured commodity finance.