Monday, August 26, 2013

Natural Gas: Gap Filled, Time for a Heat Wave Revelation

Front futures $3.5050.
Seemingly unaware that their confreres in Chicago are sweating, traders in 10282 (NYMEX) have apparently been lulled by beautiful temperate weather.
Here's the forecst for the corn belt on Tuesday:

Tuesday's Highs

I use The Weather Channel because their color palatte skews hot with temps in the 60's already yellow and the '70's a dark orange.

Meanwhile the natural gas traders are late into a series of higher lows and sometime between tomorrow and the first storage report of September (covering this week) on the 5th we should see the top of this little run somewhere near the top end of the channel we first mentioned on the 15th:
...but the futures could trade up to $3.60 (from last week's 3.129 spike bottom) and still be in a downtrend:

Today's tiny gap up was quickly filled setting the stage for a bit more upside and then, best guess, a revisit of the up gap from August 9th (Fri.) to the 12th and maybe even $3.00 as we get into the "shoulder" injection season. The 8th was a good day, more to come.
From FinViz: