Following up to the trade idea posted for Natural Gas here, today's DoE NG inventories came out smaller than expected in regards to the stockpiles. NG futures, initially dropped during the day and especially ahead of the report, only to surge more than 3%. If you recollect, a trade call was made to BUY Natural Gas. Also, I mentioned the resistance of 4.7, which is where price is at currently.
Expect a bit more choppy trade before NG futures price continue to surge higher. Traditionally, summer months (at least in Europe) are a time to stockpile on Natural Gas. However, the ongoing geo-political tensions between Ukraine and Russia could play spoil sport at least for the EU, which in turn could put pressure on global prices (read as US).
All said and done, it will only be a matter of time before Natural Gas trades in the upwards of $5 and more. Thus, if you have bought Natural Gas at around $4... hold!!
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