• 4 minutes Why Trump Is Right to Re-Open the Economy
  • 7 minutes Did Trump start the oil price war?
  • 11 minutes Covid-19 logarithmic growth
  • 15 minutes Charts of COVID-19 Fatality Rate by Age and Sex
  • 18 minutes China Takes Axe To Alternative Energy Funding, Slashing Subsidies For Solar And Wind
  • 4 hours Russia's Rosneft Oil Company announces termination of its activity in Venezuela
  • 7 mins Trump eyes massive expulsion of suspected Chinese spies
  • 6 hours America’s Corona Tsar, Andrew Fauci, Concedes Covid-19 May Be Just a Bad Flu With a Fatality Rate of 0.1%
  • 2 hours Saudi Arabia Can't Endure $30 Oil For Long
  • 8 hours KSA taking Missiles from ?
  • 10 hours Where's the storage?
  • 10 hours Western Canadian Select selling for $6.48 bbl. Enbridge charges between $7 to $9 bbl to ship to the GOM refineries.
  • 4 hours TRUMP pushing Hydroxychloroquine + Zpak therapy forward despite FDA conservative approach. As he reasons, "What have we got to lose ?"
  • 12 hours China extracts record amount of natural gas from Gas Hydrates in South China Sea
  • 53 mins >>The falling of the Persian Gulf oil empires is near <<
  • 14 hours Wait till America opens their Q1 401k Investment Statements and see they have lost 35% of their retirement savings. They can blame the Authoritarian Chinese Communist Party..
  • 10 hours Hillary Clinton tweeted a sick Covid joke just to attack Trump
  • 15 hours There are 4 major mfg of hydroxychloroquine in the world. China, Germany, India and Israel. Germany and India are hoarding production and blocked exports to the United States. China not shipping any , don't know their policy.
Alt Text

Why U.S. LNG Can’t Win In Europe

Competition in EU gas markets…

Alt Text

Why China Shuns U.S. LNG Despite Trade Deal

China might not make good…

Alt Text

The Superpower Energy Project To Watch In 2020

Russia has already seen two…

Martin Tillier

Martin Tillier

More Info

Premium Content

An Overlooked Opportunity In Natural Gas

About a month ago, I wrote that while natural gas was bouncing after a big drop at that time, shorting when that retracement showed signs of ending was the trade to take. If you followed that advice, you probably wouldn’t have hit the high of that bounce above $3.70 but would quite likely have sold somewhere around $3.40-$3.50, once the reverse was confirmed. By now you would either have banked a nice profit or be sitting pretty. That analysis was based on a reading of a long-term chart however, and the same chart now says that it is time to take the opposite tack and buy.

(Click to enlarge)

The reason is the most basic one of all when it comes to chart analysis, a clearly defined support level. As you can see, since coming off the low of $1.611 achieved early in 2016, the NG futures contract has bounced off the $2.50 level, marked by the blue line on the chart above, a total of six times. We are now close to that level again.

Now, anyone who has ever traded knows that that doesn’t guarantee that we will move higher from here. The chart also shows, by virtue of that 2016 move, that prices can go a lot lower than $2.50, so that is always a possibility. What it does though is increase the likelihood that we move up from here, and there are other, fundamental things that support that contention.

Probably the biggest fundamental factor…






Leave a comment

Leave a comment




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