• 6 minutes Corporations Are Buying More Renewables Than Ever
  • 17 minutes WTI @ 67.50, charts show $62.50 next
  • 23 minutes Starvation, horror in Venezuela
  • 22 hours Permian already crested the productivity bell curve - downward now to Tier 2 geological locations
  • 1 day Desperate Call or... Erdogan Says Turkey Will Boycott U.S. Electronics
  • 21 hours Renewable Energy Could "Effectively Be Free" by 2030
  • 22 hours Saudi Fund Wants to Take Tesla Private?
  • 1 day Mike Shellman's musings on "Cartoon of the Week"
  • 2 days Venezuela set to raise gasoline prices to international levels.
  • 2 days The Discount Airline Model Is Coming for Europe’s Railways
  • 1 day Pakistan: "Heart" Of Terrorism and Global Threat
  • 1 day Are Trump's steel tariffs working? Seems they are!
  • 2 days Scottish Battery ‘Breakthrough’ Could Charge Electric Cars In Seconds
  • 3 hours Hey Oil Bulls - How Long Till Increasing Oil Prices and Strengthening Dollar Start Killing Demand in Developing Countries?
  • 15 hours Why hydrogen economics does not work
  • 14 hours China goes against US natural gas
Alt Text

Nord Stream 2 Clears Another Hurdle

Russia’s controversial Nord Stream 2…

Alt Text

Is This The Next Natural Gas Giant?

Nigeria has long been renowned…

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