Thursdays are always a hard call. I’ve not been so in-tune with the market this week. This should improve by Monday.
What we have:
- Weather: GFS forecast is showing consistent below average temperatures, but ECMWF again disagrees
- Demand is strong currently but without below normal temps, storage will remain on average
- Production is flattening out some but still pointing up
- Short positioning once again has some room to drive the market
Lets look at the chart.
This would be an area I’m not too sure about. I want to say we are getting set up for a rough ride. If I had to choose, stay short on this. Price is right at resistance and it hasn’t close above that line. Stay short and possibly place a stop no in the $2.6 area for Dec contract. I’m going to sit out for the report today.