Natural Gas Futures—Natural gas futures in the June contract is unchanged this Thursday afternoon in New York at 2.97 digesting some of the sharp losses that we witnessed over the last couple of trading sessions.
I have been recommending a bullish position over the last month or so from around the 2.66 level and if you took that trade continue to place the stop-loss under the 10-day low on a hard basis only at 2.88 as an exit strategy as I am not willing to risk any more than that critical price level. Gas prices are still trading above their 20 & 100 day moving average as the trend remains to the upside, however if we are stopped out we will move on and look at other markets that are beginning to trend.
Fundamentally speaking forecasts for well above-normal temperatures that will spur nat-gas electricity demand from utility providers to handle a surge in air-conditioning. Maxar on Wednesday said that well above normal temperatures are expected in the Mid-Atlantic from May 24-28. The entire energy sector remains in a longer-term bullish secular trend and I do think higher prices are ahead throughout 2021 as I see no reason to be short anything as we’re still in the beginning of massive bullish trends in my opinion.
CHART STRUCTURE: EXCELLENT
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