Trading at Nymex yesterday continued in the choppy, range-boundmanor that has plagued the market for most of November. Againtraders lamented the lack of a clear direction or price trend inthe futures pit. The December contract was held to a tight, 6-centtrading range and settled at $2.394 after never fully recoveringfrom a lower opening.
Because yesterday was notably devoid of fresh news, tradersfocused on the storage and weather information released Wednesday.Although the heating season’s first withdrawal from storage wasgenerally construed as bullish, the market appears to be moreconcerned with current weather forecasts. The 6- to 10-day forecastreleased by the National Weather Service calls for moderatingtemperatures across the Plains and Upper-Midwest. Sources agreedthat played a large part in the market’s inability to rally onstorage data. But others felt that the market’s perception thatthis winter will bring below-normal temperatures will continue tobe a stumbling block for sellers. “Who is going to short thismarket at $2.40 when the upside potential is so great if theforecasts bear out.”
In daily technicals, December has immediate support at $2.37.Resistance is more muddled, but congestion in the $2.45-47 areashould encourage additional selling, one analyst advised.
©Copyright 1998 Intelligence Press Inc. All rights reserved. Thepreceding news report may not be republished or redistributed, inwhole or in part, in any form, without prior written consent ofIntelligence Press, Inc.
© 2022 Natural Gas Intelligence. All rights reserved.
ISSN © 1532-1231 | ISSN © 2577-9877 |