Natural Gas futures on the Nymex had a volatile week before closing 6% lower than a week ago at $1.70 on Friday. EIA confirmed on Thursday a bullish, nonetheless, build of only 45 Bcf in working underground stocks for week ending July 10. Inventory currently 26.4% higher y/y. 15.9% above the 5-year average.
Trading volumes have decreased during the week and many market participants are already rolling their positions from August to September contracts. Lower trading volumes are typical during summer. We are going to buy any pull-back or dip on near term charts as we have no reason to believe this market won't go up soon or later on seasonality. We want to follow any rally, we have no interest whatsoever to test any short selling, we are letting the market naturally exhaust after near term rallies, so we can be multiple times profitable from the same ranges.
The market has to break out in an uptrend later on. Following the U.S. oil and gas industry's consolidation, Natural Gas will be the most precious fossil for the coming decades. Lower prices have made Natural Gas very attractive and will compete well with renewables for market share in the crucial domestic electricity generation market. According to recent figures published by EIA, Natural Gas-fired generation in the Lower 48 increased 9% in the first half of 2020. Online rigs at record low yet supply remains steady.
The coronavirus concerns are alive, cases are increasing in 43 states and some of them are deciding to close some businesses at a time when recent U.S. retail sales rise more than expected. Consumer sentiment remains disappointing while housing starts in June increased 17.3% beating expectations. U.S. macro figures and the dollar against majors to be routinely monitored during a prolonged recovery. Daily, 4hour, 15min MACD and RSI pointing entry areas. 