Alvin Toffler’s “Future Shock” (Chapter I) notes: “Future shock…the shattering stress and disorientation that we induce in individuals by subjecting them to too much change in too short a time.”
The ferocious bear trend in NYMEX natural gas (nearest futures continuation) that commenced after 11/14/18’s 4.929 peak probably ended with 8/5/19’s 2.029 low. If not, it likely will finish fairly soon. Assuming normal weather, major support around 1.90/2.00 probably will hold. For the near term, noteworthy resistance stands around 2.50/2.55, with 3.05/3.10 an important target. If United States winter weather is significantly colder than normal, an advance toward 4.00 looms.
Marketplace history of course is not marketplace destiny. Based on historical major bear trends for NYMEX natural gas (nearest futures), the current bear trend has lasted sufficiently long in price (distance) and time terms for that trend to end and for a bull move to emerge. A critical variable supporting this viewpoint is the overall United States natural gas inventory situation. From the days coverage perspective, America’s natural gas inventory outlook is bullish.
FOLLOW THE LINK BELOW to download this article as a PDF file.
A Bear Trend's End- US Natural Gas (9-4-19)