We said after the futures did their stroke-inducing 6.5% pop-n-drop last Thursday:
This is very negative and sets up a decline to the 2.60-2.63 area.The futures are halfway there.
From Dow Jones via FoxBusiness:
Natural-gas futures bounced back Tuesday after dropping to the lowest level since June, holding above a key technical trading level as investors focus on weather forecasts for the rest of August.From Finviz:
Natural gas for September delivery rose 2.6 cents, or 1%, to trade at $2.755 a million British thermal units on the New York Mercantile Exchange after falling to $2.729/MMBtu in Monday's session.
The rebound comes as natural-gas prices reach the 200-day moving average of $2.727, an important trading level for many investors that often serves as a floor for prices after big declines. Futures have fallen 15% so far this month.
"Given the swift reversal in recent days we could and should see markets take a breather from selling off here," said Matt Smith, an analyst at Summit Energy, in a client note.
The tumble in recent weeks comes as investors prepare for the last few weeks of summer in the U.S., which typically mark the end of a period of high gas usage.
Temperatures this June and July were much hotter than normal, forcing utilities to burn more gas to meet electricity demand as homes and businesses cranked up their air conditioning. The hot weather helped slow the growth of U.S. natural-gas stockpiles and raised prices from decade lows below $2/MMBtu.
Now, forecasters are calling for cooler-than-normal temperatures. MDA EarthSat on Tuesday said "seasonally cool" temperatures are expected for much of the U.S. over the next ten days, with only "minor warming trends" through the end of August....MORE