• 6 minutes Trump vs. MbS
  • 11 minutes Can the World Survive without Saudi Oil?
  • 15 minutes WTI @ $75.75, headed for $64 - 67
  • 9 hours Satellite Moons to Replace Streetlamps?!
  • 1 day US top CEO's are spending their own money on the midterm elections
  • 3 hours EU to Splash Billions on Battery Factories
  • 7 hours U.S. Shale Oil Debt: Deep the Denial
  • 15 hours The Balkans Are Coming Apart at the Seams Again
  • 1 day OPEC Is Struggling To Deliver On Increased Output Pledge
  • 3 hours The Dirt on Clean Electric Cars
  • 2 hours Owning stocks long-term low risk?
  • 1 day Uber IPO Proposals Value Company at $120 Billion
  • 17 hours 47 Oil & Gas Projects Expected to Start in SE Asia between 2018 & 2025
  • 1 day A $2 Trillion Saudi Aramco IPO Keeps Getting Less Realistic
  • 1 day 10 Incredible Facts about U.S. LNG
  • 1 day U.N. About Climate Change: World Must Take 'Unprecedented' Steps To Avert Worst Effects
Alt Text

How The Trade War Could Benefit Australian Gas

As the U.S.-China tit-for-tat tariff…

Alt Text

The Perfect Storm Bringing China And Russia Together

A variety of geopolitical and…

Alt Text

Russia To Resume Gas Imports From Turkmenistan

According to Aleksei Miller, Gazprom’s…

Martin Tillier

Martin Tillier

More Info

Trending Discussions

Bottom Fishing In Natural Gas

Over my time writing here I think I have established certain things. One of them is that I don’t have a lot of time for those who, from a trading perspective, refer to “bottom fishing” in a derogatory way or constantly point to the dangers of attempting to “catch a falling knife.” It seems to me that such people have probably never worked in an actual dealing room, where such things are every day activities. As I have pointed out before, if done in a disciplined manner bottom fishing can be an extremely lucrative pastime.

The discipline, though, is the key. It is important to understand that momentum is powerful, and that stocks and commodities that have been in freefall can continue to decline way past the point where it is logical. It is likely that even though a bottom fishing trade makes perfect sense it could still be wrong. As a result, setting, and more importantly sticking to, tight stop losses is essential. You want to put yourself in a position to make money even if you don’t actually get it right until the third try.

With that in mind, I would suggest that it is once again time to look at buying natural gas in some way. The decline in the commodity has been spectacular, falling from a high of around $6.50 in February of 2014 to a 17 year low of $1.61 this morning.

(Click to enlarge)

If that isn’t the proverbial falling knife then I don’t know what is. The reasons for the drop are well…

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