Natural gas is finally in season due to the increased demand for A/C.
Natural gas made an inverse head and shoulders pattern for the past few months. It met resistance right at one of my green lines. It's green because it will eventually become support in the future.
Natural gas is very seasonal. Right now, the demand has increased due to the hot weather in August. However, natural gas may spike down during September due to cooler temperatures.
If natural gas doesn't go back to the lows, then it may be forming a multi-day bull flag during September. Natural gas tends to really ramp up in colder temperatures starting in mid-October.
Personally, I would not short natural gas. Sure, you can make a case for the spikes down. Let's look at the big picture here. Last month had the lowest prices in natural gas in nearly 30 years.
If you are already at near historic lows, how much more can you short? You're trying to squeeze juice from a dried fruit at that point. Let's say you longed gas and it spikes down. All you have to do is wait for winter to get profits. Why? Cold temperatures require heat. Heat requires energy. Energy requires fuel.
Oil prices are also coming back too. If you think about it, gas is a laggard. You need oil to produce gas. If oil becomes more expensive, gas will eventually become more expensive.
If not, imagine by next year if a vaccine is developed. Uni of Oxford was on it since January. Demand for energy will skyrocket once a vaccine is mass produced. We were already near historic lows in natural gas. It's just playing a waiting game for it to spike further.
Chess, not checkers.
Natural gas made an inverse head and shoulders pattern for the past few months. It met resistance right at one of my green lines. It's green because it will eventually become support in the future.
Natural gas is very seasonal. Right now, the demand has increased due to the hot weather in August. However, natural gas may spike down during September due to cooler temperatures.
If natural gas doesn't go back to the lows, then it may be forming a multi-day bull flag during September. Natural gas tends to really ramp up in colder temperatures starting in mid-October.
Personally, I would not short natural gas. Sure, you can make a case for the spikes down. Let's look at the big picture here. Last month had the lowest prices in natural gas in nearly 30 years.
If you are already at near historic lows, how much more can you short? You're trying to squeeze juice from a dried fruit at that point. Let's say you longed gas and it spikes down. All you have to do is wait for winter to get profits. Why? Cold temperatures require heat. Heat requires energy. Energy requires fuel.
Oil prices are also coming back too. If you think about it, gas is a laggard. You need oil to produce gas. If oil becomes more expensive, gas will eventually become more expensive.
If not, imagine by next year if a vaccine is developed. Uni of Oxford was on it since January. Demand for energy will skyrocket once a vaccine is mass produced. We were already near historic lows in natural gas. It's just playing a waiting game for it to spike further.
Chess, not checkers.