The May Nymex contract nudged 0.4 cents lower to $2.475 Friday,amid a day when the contract could neither sustain a move belowtechnical support at $2.44 nor rise any higher than $2.498. Totalestimated volume came in at 46,216, much of which was the work oftraders covering positions before the weekend, a source said.
The inability for May to move much on Friday suggests tradersare looking for more clear cut price direction before entering intopositions “(They are) probably not going to get it,” anotheranalyst proclaimed. “Temperatures will be mixed during the next6-10 days, with some key demand regions having above normal demandand some below normal demand. However, with energy demand alreadybeing so low this time of year, that shouldn’t really matter muchfor spot prices.
“What probably will matter is that LDCs are buying storage nowfor fear of hotter temperatures this summer, which tends to happenfollowing El Ni¤o winters. This should keep spot prices fromfalling too much, and should most likely keep prices above Mayindex levels. That means May should be no lower than majortechnical support at $2.33 by the time May converges with cashprices at its expiration,” he concluded.
If May does fall below that level, however, look for secondarymajor support at $2.20, a chartist told GPI. He places resistancefor May at $2.56.
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