Hi TR,
Rightly pointed out - NG has been hammered badly, irrespective of the pin bar spike on the weekly chart. Technically, NG is in a clear downtrend.... I checked up some fundamental reviews before commenting, but the analyst will leave one more confused than ever - as it is not clear if he is making a bear case or having a bullish outlook. :lol::lol::lol:
NG, as we all know makes moves based on weather foriecast. Dec. is soon approaching, however, the forecast is for milder winter due to El Nino effect. So this is a big negative. The other is that NG inventory above the 5 year average, with little storage space. The only silver lining seems to be that the NG producers have cut back on output.... again not the most positive news, as it is due to low prices and lower demand.
This is what the report on Investing dot com says : US nat gas prices have crashed on three micro factors :
http://in.investing.com/analysis/nat-gas:-bofaml-lowers-year-end-target-to-$3.00-mmbtu-3437
US nat gas prices are breaking down. Front-month futures are trading at $2.29/MMBtu, the third lowest in a decade, while long-dated prices have also come off sharply. We can point to three short-term negative dynamics. (1) the US market suffers from excessive inventories, (2) end-user demand is soft due to sluggish industrial growth and mild weather, (3) production, although flat-lining lately, remains high.
So considering the above, let's look at the charts :
My 2C.
hi all , NG weekly bar is pin bar , can we expect some green candles now on, this counter is hammered very badly.
also crude is hovering around 46 after hitiing 42.6 low.