-HUGE- moves in both today CL and NG. Likely theyâre overbought on the intraday, but they're making huge technical hurdles on the daily: CL - first solild break above the 20-day sma since Dec 24th. NG - first solid break above the 50-day sma since Dec 16th.
Ya, nat gas finally perking up. Just be careful have a nice resistant zone just above the market that can send it back to 7.00 in a heartbeat in 8.019-8.184 area. Overall, this is market is very oversold on a longer time frame and could continue higher but I am looking for shorts in that area with the current price action.
Agreed. Thursday will be the tell. Can we push through 8? Or do we struggle and then bomb? COTs are bullish tho. Large spec are neutral.
Nice call on the resistance. I'm still in. I'm probably biased (long) but the action seems to be shorts protecting and trying to stop us going through 8. Both times we've hit 7.90 and immediately sold off on huge volume. I'd more likely buy that as a top if we sat at 7.90 for a while and then faded. We'll see.
The selloff this morning was due to the EIA storage withdrawal coming in well below mkt. expectations, it was not a technical move. The range from analysts was a 165-225 Bcf withdrawl and the number was a disappointing 186 (which leaves us 152 Bcf over last year and 454 Bcf--big block size--over the 5 year average for this period of time---we be swimming in gas). As soon as the number hit the mkt. imploded, losing 40 cents in a matter of minutes. It's interesting to see that the knee jerk was just that with the market moving almost thirty cents higher than the post number release low intraday, before settling back toward a 7.53 close. With artic temps. in the forecast for at least the next two weeks (next week will see temps 20-25 degrees below normal in much of the center of the country), the bullish sentiment in this mkt. remains intact.