Trade view /
20 September 2016 at 14:50 GMT
Natural gas is being supported by an eroding supply glut and a potential tightening in 2017.
Our breakout model has given a buy signal in natural gas today on the continuation chart above $2.998/therm.
This follows a strong rally these past couple of weeks during which time weekly injections came in below seasonal averages due to strong weather related demand.
The stop will be changed daily based on the lowest price during the previous 20 days. Updates will be posted as a comment to this trade view on Tradingfloor.com.
Rolling to the November future or CFD before expiry of the October contract next week.
Weekly inventory injection picking up ahead of the beginning of the withdrawal season beginning early November. Risk of long liquidation from hedge funds having increased bullish bets to a two-year high.
Source: Saxo Bank
Buy NGV6 or NATGASUSOCT16 at market
$2.665 (based on last 20 days low, i.e. it will move higher in coming days)
Based on our breakout model so no target, only stop
— Edited by Clare MacCarthy
Non-independent investment research disclaimer applies. Read more