Well… Prices failed and the weather update stinks. More so, the price failure happened at the time of the latest ECMWF forecast update. It would be fairly safe to say, this caused the price of natgas to fall. The question is, where from here?
Prices are still staying in the large downward channel and they have broken the previous low of the small up trend. I believe I’m going to exit my longs and sit this one out. I have to say, this week was not the right time for a long upward trend. Managed money positioning was set up for a long run, but there just wasn’t enough of a trigger to get us moving.
I’ll place a stop at $17.17 on my UNG position. If this does not trigger, I may sell at the end of the day or decide to hold. The next ECMWF comes out in the afternoon, and I’ll have decided by 3 pm Est time.