FxWirePro: Bears win in Natural gas; ready to push towards $2.68 per MMBtu

Earlier this week in an article named, “FxWirePro: Bulls and bears fight over natural gas ahead of summer”, we warned our readers that intense fighting has been going among the bulls and the bears looking to take control of natural gas ahead of the summer. Here are some lines from that article, “Traditionally, the summer used to lead to the lesser demand for natural gas, however, the increased usage over the past years have led to higher use of natural gas in power generation and the use of air-conditioning makes a lot of difference. Last year, the change in inventory declined to negative for the first time during summer. Hence, the natural gas bulls who are already energized by weaker production last year are not ready to give up despite approaching summer.”

The price action since suggests that bears have won the fight at least for now and it is more likely as we said in the past article that if bears win, then $2.68 area is the target for natural gas in the coming months. We would like to recommend selling natural gas with the mentioned target.