Natural Gas Technical Analysis for the Week of May 23, 2011

Natural Gas Technical Analysis for the Week of May 23, 2011 : The natural gas markets had an absolutely volatile session this week, and on Friday managed to wipe out the losses suffered earlier in the week. The market in general looks very range bound, and the patient trader can make serious money as long as this range holds up. The $4 mark seems to be the floor, while the $4.60 area is the ceiling. If you are patient enough to wait for these areas to be tested, you could do quite nicely, and who knows for how long?


Natural Gas Weekly Fundamental Analysis for May 23-27, 2011

Last week, natural gas prices extended their drop for a third consecutive week, where expectations of falling demand amid moderating weather conditions in Eastern and Southern of the United States, which will reduce demand for power-fuel, in addition to rising stockpiles of natural gas pressured natural gas prices to fall heavily, as the EIA report for natural gas inventories showed stockpiles rose the most since September 2010, although natural gas prices rebounded last Friday on expectations of above than normal weather conditions in Eastern of the United States.

Weather conditions over the upcoming period in addition to natural gas stockpiles will be the major movers for natural gas prices, but given the recent speculations, we should expect natural gas prices to rise back during this upcoming week, but another strong rise in natural gas inventories will surely send prices tumbling to the ground.

Highlights for this week that will probably affect the Natural Gas direction are:

Thursday, 14:30, The EIA will release the weekly natural gas storage change for the week ending May 20, where the prior report showed that natural gas inventories inclined by 92 billion cubic feet. (source www.insidefutures.com ) For the latest updates PRESS CTR + D or visit Stock Market news Today

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