• 4 minutes Your idea of oil/gas prices next ten years
  • 7 minutes WTI Heading for $60
  • 13 minutes Could EVs Become Cheaper than ICE Cars by 2023?
  • 2 hours Is California becoming a National Security Risk to the U.S.?
  • 6 hours UK Power and loss of power stations
  • 5 hours I Believe I Can Fly: Proposed U.S. Space Force Budget Could Be Less Than $5 Billion
  • 4 hours Anyone holding Nvidia stock?
  • 4 hours Pence says South China Sea Doesn't Belong To Any One Nation
  • 18 hours At U.N. climate talks, US Administration Plans Sideshow On Coal
  • 20 hours Plastic Myth-Busters
  • 5 hours China Claims To Have Successfully Developed a Quantum Radar That Can Detect 'Invisible' Fighter Jets
  • 18 hours OPEC Builds Case For Oil Supply Cut
  • 14 hours A Sane Take on Nord Stream 2
  • 21 hours Good Sign for US Farmers: Soybean Prices Signals US-China Trade Deal Progress
  • 1 day Soybean sale to China down 94%
  • 1 day what's up with NG?

Bottom Fishing In Natural Gas

For most people, the fall of crude oil since the middle of last year has been the dominant story in commodities recently. You still hear much talk of a “freefall” and the like, even though the low for WTI was reached more than two months ago and oil is now trading at levels over 20 percent higher than it was then. For industry insiders and those of us who follow these things, however, the more scary collapse has been in natural gas.

That drop started while oil was still pretty buoyant back at the beginning of 2014 and has continued unabated ever since. The 2 year chart for natural gas futures is a pretty depressing sight.

It takes a brave man or a fool to attempt to find a bottom when a chart looks like that, but whichever of those you may think I am, I believe the time has come.

Actually I should add a third type of person who might want to attempt such a feat: somebody with a plan to control the risk, and I would put myself in that group. I will freely admit that I have nibbled at natural gas before and got burned, but regular readers will know that that isn’t for me, nor should it be for any disciplined trader or investor, a deterrent.

If your analysis shows logical reasons to believe that we should be near the bottom and if you are aware that you could be wrong and set stop losses accordingly, then you can, as I have said in the past, afford to be wrong a few times; losing around 5-10 percent on a trade with potential for…

To read the full article

Please sign up and become a premium OilPrice.com member to gain access to read the full article.

RegisterLogin

Trending Discussions




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