Nat Gas Up, Next Short Squeeze?

Discussion in 'Commodity Futures' started by RedSun, Feb 1, 2021.

  1. RedSun

    RedSun

    NG future is up 10% today. Other than snowy weather, the technical may have something to do with it.

    NG price has been so depressed. Producers have been so depressed and they have no money to drill new wells. But the over-supply situation has been alleviated.

    If we get some cold or (hot summer), we'll see the demand-supply balance more inline.

    With NG future trading volume much lower than that of CL, we can easily see NG positions get squeezed. Then we can see $3, even $4 NG price soon.
     
  2. easymon1

    easymon1

    This is what Cargill uses, right? lol
    February Forecast and a Polar VortexQuick forecasts for February holidays!
    https://www.almanac.com/february-forecast-and-polar-vortex#

    Winter Weather Forecast 2020-2021
    https://www.almanac.com/winter-extended-forecast-farmers-almanac

    What Are Long Range Weather Forecasts?
    https://www.almanac.com/weather/longrange

    ng-998 2021 0201.png

    Trading the T-line - cued....cut to the chase ...
    Stephen Bigalow
    https://elitetrader.com/et/threads/...t-right-here-baby.335635/page-15#post-5162295
     
  3. RedSun

    RedSun

    This is not even polar vortex. Just dumped 8" of snow. Temperature hardly dropped much. And this snow was all forecasted, nothing new.

    Also NG is at HH. Over the past heavy snow, even winter 2017-2018, NG never jumped like it now. Only Northeast basis moved up.

    NG is up almost 5% again today. Clearly this is technical move. Look for more breakout.
     
  4. bone

    bone ET Sponsor

    Check your math.

    And also look at the the November 02, 2020 highs.

     
  5. easymon1

    easymon1

    ng 2021 0205 .png
     
    Last edited: Feb 6, 2021
  6. Nine_Ender

    Nine_Ender

    Nat Gas is highly volatile it's been hard trading Cdn nat gas stocks on the way up huge corrective phases on the way up to new 52 week highs.