Natural Gas and Crude Oil Investing Strategies for 8-01-19 –

Natural Gas price
Natural Gas investing
Natural Gas and Crude Oil, both counters have been volatile for past two months. Energy sector seems to attract speculative traders lately.

Looking at inventories, both Natural Gas and Crude Oil has been struggling. Crude Oil has been in an over supplied zone for almost 2 months now and Natural Gas production was seen at 5 year low.

Both energy counters have surprise traders and we did see lot of speculation happening in both counters.

Last two months seems quite rough for traders and most investors were forced to squeeze out of market since we saw both counters trading at opposite ends

We heard lot of traders saying that one should trade in Natural Gas only if risk appetite is quite high.

Natural Gas Price Forecast

On Monday Natural Gas market was trading in an oversold territory but introduction of cold weather may support the prices at this point.

Natural Gas price chart
Prices are expected to trade lower but in range for few days till investors get some clarity on the weather patterns. Looking at the current market, it is easy to say that the price movement is only speculative and an indecision persist among traders.

It was earlier expected the cold weather would return and we could see some speculative buying. Buyers could dominate the market for few days but this doesn’t seem the case.

Looking at the short-term weather forecast, demand is expected to decline. Based on mid-term forecast, demand could increase but not sure if we could see some strong buyers in the market.

Currently market is holding the support underneath and it seems that we could expected prices to surge in a week or so.

I would suggest to buy Natural Gas for a quick trade at 207 for target of 213 and SL of 205. Please follow the strict stop loss.

Crude Oil price

Crude Oil price chart
Looking at both WTI Crude and Brent, we have a resistance around $50 and $60 respectively in the global market. Despite the fact that major producers of Crude have been working on reducing the production I believe we still might not see buyers dominating the market. Sellers would be seen entering the market at resistance and we can expect some range bound trade till then.

I would recommend selling Crude Oil at 3450 for target of 3350 and SL of 3530.  

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