Natural Gas Prices : “Can’t Hold It Back”
Natural Gas prices continue rallying as the weather forecasts show that we’ll have a freezing winter.
We have entered a Long trade and we have reached our second target at 4.68. After a pullback, Nat Gas prices headed North again. 4.88 is the key resistance and the breakout of this key level will lead the prices towards 5.08.
An interesting article has been published on Bloomberg. The article is based on a scientific research.
Highlights of the article:
- Magnetic storms on its surface can generate dark-looking areas called sunspots, blemishes that wax and wane in roughly 11-year cycles and may hold clues for predicting weather patterns: The fewer the spots, the colder winter will be in swaths of the Northern Hemisphere.
- That’s the theory, anyway, and one that’s gaining ground among commercial meteorologists on the lookout for new ways to serve their clients — traders eager to know how cold it’s going to be so they can gauge natural-gas demand.
- McIntosh, an astrophysicist, said he believes the sunspots do affect Earth’s weather. Though he thinks more research is needed, he won’t argue with the meteorologists, and if it turns out he is wrong, “I’m prepared to be hung in effigy.”
The sun right now is in a blemish-free period, known as a solar minimum. The last one occurred around 2009 — when cosmic rays began hitting Earth at the highest levels in records going back to 1964 at the University of Oulu’s cosmic ray station at the Sodankyla Geophysical Observatory in Finland
- The market seems to be suspecting as much. Natural-gas futures rallied 41 percent in November, the biggest November gain since 2000. Gas stockpiles are at a 16-year seasonal low as the heating season kicks off.
- With all energy markets, you have to expose yourself with things outside your lane, apparently this is a significant enough development that we have to pay attention
You can read the full article: Magnetic Sun Storms Could Hold the Secret to Natural Gas Prices
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