How low can natural gas go?
- Thread starter buttermarket
- Start date
good lookin' out.
Attachments
The price of natural gas today is same as it was in 1999
So how can these companies make money or the companies in 1999 was must be making big profits in 2007 when it was trading at $12 now it's $2
The problem with natural gas it's byproduct of oil sands and they cannot store it too costly to store of dump it environment cost or cannot burn the natural gas (carbon tax)..they have to dump in the open market or give it way.
these carbon taxes or tax on carbon emissions they cannot burn natural gas into the atmosphere. anymore. they have to sell into the open market. further depressing prices for natural gas producers.
$1 it could go or this industry or new regulatory gov't changes cause nobody is making money selling natural gas..they just shut off the wells...and stop production. further reducing jobs in the industry. natural gas is like coal,,the gov't putting tax on burning natural gas
There is no INFLATION for this commodity. it's in deflationary if you include inflation. the price of natural gas is LESS than it was in 1997. long term buy and hold sure doesn't work for this commodity good for home heating bills but investors not so good. only traders made so money..investor in natural companies overal zero ROI. or total loss on their investment.
The 5m chart is making for some nice setups.
https://elitetrader.com/et/threads/...at-right-here-baby.343012/page-7#post-5327975
Last edited:
May contract?
Whatever the forward contract is. I’ll look into it tomorrow evening. NG is in contango, so I’m not trying to pay for the roll. I really don’t hold out much hope for NG as a hold. Maybe. But right now it looks to me like it hits this trend line, spikes over 20ish trading days, and then falls back to the trendline (good 35%+ spikes). Will that continue? I don’t know. But it won’t cost me much to find out. It just shook everyone out who went long 2 days ago playing that game. It also has a shot at fulfilling a cup and handle (or triple top breakthrough) for a much larger gain. favorable r/r here as it won't cost anything to get into due to the tight stop. I'm not piggy. 25% daily ATR stop (which is declining). I love these setups.
Last edited:
NG day range has deteriorated since mid Feb 21.
Now it is < 0.1 point and it is not that great for day trading.