Natural Gas Price Ready To Heat Up? - PowerPoint PPT Presentation

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Natural Gas Price Ready To Heat Up?

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The natural gas price may see bullish action in coming session as a heat wave hits the Central and Eastern US. – PowerPoint PPT presentation

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Title: Natural Gas Price Ready To Heat Up?


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Welcome to Commodity Trading Research Your
premier site for fundamental and technical
analysis for profitable Commodity Trading. For
more info on Commodity Trading Research visit our
website www.CommodityTradingResearch.com
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  • Hi, My name is Justin and Im with Commodity
    Trading Research, today were reviewing our
    recently published article

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Natural Gas Price Ready To Heat Up?
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Natural Gas Price Forming A Bottom?
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Anyone who follows the energy markets will tell
you the same thing It has been an exceptionally
rough year for natural gas and the companies
producing it.
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Over the past 12 months the price of the gaseous
commodity has fallen 25. With natural gas
currently trading near multi-year lows at 2.00
mmBtu, it should come as no surprise that natural
gas exploration companies are falling on hard
times.
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But there may be some relief in sight soon. Let
me explain
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There a number of fundamental factors, and a
technical one as well, leading me to believe the
natural gas price will see bullish price action
soon.
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First of all, natural gas exports are scheduled
to start in a few months. Cheniere Energys LNG
Sabine Pass facility is on track to start
overseas deliveries sometime this quarter or
early in the fourth quarter.
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Overseas LNG exports are a source of demand the
US natural gas market has yet to see. But thats
not all
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The Summer of 2015 is turning out to be a toasty
one. The Eastern and Central US is in the grips
of a suffocating heat wave. Temperatures soaring
into the mid-90s and 100s across various states
has consumers cranking up the air conditioning.
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Of course, with higher power demand comes higher
natural gas usage. And according to the NOAA,
hot temperatures are going to stick around for a
while
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As you can see in this 6-10 day outlook, the
entire Eastern half of the country will likely
see above average temperatures. But heres
whats really piquing my bullish interest in
natural gas
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Over the past few months the commodity has put
together a promising technical pattern. Take a
look
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Notice how the green trend lines in the chart
above are converging to a point on the right side
of the chart. This is called a triangle
consolidation pattern. These formations tend to
result in an explosive price reaction when either
trend line is broken.
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As you can also see, natural gas is sitting just
beneath the top green trend line. If the
commodity can break above 2.95 mmBtu in coming
sessions, we may see bulls take control of the
market, possibly sending it to the 3.20 area or
higher.
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How do you capitalize on such a situation? I laid
out the best energy non-leveraged energy focused
ETFs the market has to offer here. If youre
looking to add a bit more juice to your gains,
consider the leveraged natural gas ETFsin this
article.
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Of course, I always recommend you follow a plan
with each and every trade. In case you dont
have one, I put together a basic one for you
here.
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