• 3 minutes Is Pete Buttigieg emerging as the most likely challenger to Trump?
  • 5 minutes Can LNG Kill Oil?
  • 8 minutes Question: Why are oil futures so low through 2020?
  • 11 minutes Don't sneeze. Coronavirus is a threat to oil markets and global economies
  • 5 hours “The era of cheap & abundant energy is long gone. Money supply & debt have grown faster than real economy. Debt saturation is now a real risk, requiring a global scale reset.”"We are now in new era of expensive unconventional energy
  • 3 hours CoV-19: China, WHO, myth vs fact
  • 17 hours Question - What if there are no buyers for Chevron's Appalachia Assets?
  • 7 hours Blowout videos
  • 3 mins Democrats Plan "B" Bloomberg Implodes. Plan "C" = John Kerry ?
  • 1 day OIL trades as if the virus is a 1 quarter event. As if it's Containable, Reversible and Temporary. Is it ?
  • 13 hours Natural Gas
  • 1 day Energy from thin air?
  • 2 days Hey NYC - Mayor De Blasio declares you must say goodbye to fossil fuels. Get ready to freeze your Virtue Signaling butts off.
  • 2 days Foxconn cancelled the reopening of their mfg plants scheduled for tomorrow. Rescheduled to March 3rd. . . . if they're lucky.
  • 16 hours Cheap natural gas is making it very hard to go green
  • 6 hours US Shale: Technology
Editorial Dept

Editorial Dept

More Info

Premium Content

Natural Gas Could Soon Fall Below $2

Natural gas looks doomed again. Poor old natty has spent the entire week declining from an already low level, and two things that happened during that drop suggest that it is far from over. At this point, a break of the psychologically important $2 level looks imminent and if that happens it will probably trigger even more selling as the last of the stubborn longs rush for the exit.

The first of those things happened on Tuesday when the long-term chart for natural gas futures (NG) exhibited a well-known, ominous-sounding pattern…a death cross.

It can be seen on the chart above, when the solid yellow line, which represents the 50-day moving average, crosses the blue line, representing the 100-day average. That is generally considered by traders and analysts to be a very bearish indicator.

The problem with anything like this that relies on momentum is that to some extent, when the signal appears it is really just a confirmation of something that has already occurred. Natty has been falling since it hit a peak of around 2.90 in early November, so a bearish signal can’t really be seen as new. However, the price action that followed the last, similar signal suggests that it shouldn’t be ignored.

In October, natural gas futures did the opposite…they showed a “golden cross”, when the short-term average crosses the long in an upward direction. I pointed that out in an article in these pages at the time, and sure…




Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News