Will the Perfect Storm in Natural Gas Markets Lead to a New EnerIn an era of unprecedented global energy transformation, the natural gas market stands at a critical juncture where geopolitical tensions, technological advancement, and infrastructure development converge to create a potentially game-changing scenario. The ongoing Middle East crisis, particularly the Israel-Iran tensions threatening the Strait of Hormuz, could reshape energy flows and trigger a cascade of effects across interconnected global energy markets, potentially forcing a fundamental reassessment of natural gas's role in the global energy mix.
A seismic shift is approaching in North American markets with LNG Canada's anticipated 2025 launch, which promises to revolutionize Canadian gas pricing dynamics and global market access. This transformation coincides with an extraordinary surge in potential demand from AI and data centers, projected to consume between 3 and 30 billion cubic feet per day of additional North American gas. Such technological evolution, coupled with Asia's growing appetite for cleaner energy sources, suggests a structural reformation of traditional gas flow patterns and pricing mechanisms.
The convergence of these factors presents both challenges and opportunities for market participants. While weather patterns and storage dynamics continue to influence short-term price formation, longer-term strategic considerations are increasingly dominated by infrastructure development, market access, and geopolitical risk management. As the industry adapts through strategic hedging, infrastructure investment, and consolidation, the natural gas market appears poised for a period of dynamic evolution that could fundamentally alter its global value proposition and establish a new paradigm in energy markets.
LNG
Natural Gas Goes Kaboom!Profits have been secured I the Natural gas trade. That being said I still think Nat gas equities can push higher.
On the UNG chart we just saw the 20 day MA & 50 Day MA bullishly crossover each other.
Last time this happened Nat gas had a 4-5 day parabolic move.
The bulls must be careful to not push this commodity up too quickly because it makes the pattern less likely to have a continued breakout.
We are still putting in Lower weekly highs, so the next test of the most recent pivot high is going to be crucial.
If the bulls can trigger the weekly inverse head and shoulder pattern there's going to be a great long continuation opportunity. Until we break the pivot high & create a higher high traders must use caution now that we've had a large move occur.
AR, EQT, CPK, LNG are all set to push higher if Nat gas holds these gains.
Natural gas...time to buy? Natural gas just keeps bleeding lower.
Despite the oversold intra day condition this commodity is finding no support.
Natural gas equities are mixed right now, but are definitely showing some signs of accumulation.
We think the next 2 support zones on Nat gas if we lose this critical area are $2.21 & $2.00
Beware Nat gas tends to overshoot.
This trendline we are holding right now connects through major lows going back to 2020.
Natural Gas: A Mega Move is BrewingNatural Gas has been a very volatile asset in recent sessions.
The price action in the 4 hour chart has triggered a bullish breakout.
The next bullish inverse head and shoulders pattern on the daily chart is starting to take shape. This pattern has not yet triggered.
If we see a breakout of this pattern there is about $1.50 of upside from the neckline.
Resource stocks are still holding up very well, granted so is the market.
A very similar structure is playing out on the weekly chart, regarding the 50 Weekly MA
If we see price trade in congruency we should see more upside this week and then potentially we may see some sellers the folling week
UNG can it rally from another monthly low ? LONGUNG on the daily chart has put in another monthly low similar to that of December after
falling from a double top in early January. Gas production may be low. Storages may be
depleting as demand is steady even in mild winters. The indicators show mild bullish
divergence on the zero-lag MACD and volatility compression on the Fibonacci levels with low
volumes overall and selling predominating. RSI levels are in the upper 40s and staady.
I see this as a long trade setup targeting first 22 near to the midline of the Fib bands and
then 24 at the Fib retracement level for the trend down from October into late December.
The stop loss is about 2% at 19. R:r 2.6 : 0.4 or about 6.
Natural Gas: the monster tradeNAtural gas has broken out of a powerful base.
We have seen some stellar price action over the last couple weeks.
A short squeeze in the making could be brewing.
s we approach some heavy daily and weekly resistance, you may see some profit taking ahead of the next leg up.
The daily 200 MA & weekly 50 MA should be respected until they're broken.
CPK - Big moving coming? This chart has gone through ample consolidation.
Once this pattern breaks its going to be a very powerful move.
Being the fact that were seeing a bullish shift in Utilities and gas & Oil, we think this name is setting up for a upside move.
if Nat gas makes a true bottom this name will likely outperform.
This is a lighter volume name so trade with caution.
Natural Gas closed bullishly today!Nat gas confirmed a daily chart breakout!
Its looking likely that we are now putting in a basing formation to move higher.
Now that we are holding above $1.86...we could start to see shorts cover.
I remain bullish as long as were above this key gap zone from 2020.
Nat gas resource stocks are continuing to show signs of accumulation.
$2.25 upside target on watch. $3- $4 by end of year.
BOIL 3X / Triple Leveraged Natural Gas ETFon the 4H chart is showing a round bottom reversal at the bottom of the high voume area
and rose over the POC line of the intermediate-term voume profile. Price now has room for
a 50% move to the top of the high volume area at $ 52. The chart shows the relative
volume indicator supports a long buy as does the dual time frame RSI.
A speculative call option trade would be $60 in 4 months while a safer call option
would be in the money @ $30 in 7-9 weeks. I am also looking at UNG, LNG and XNGUSD on
forex.
BOIL is starting to get hot ( 3X Natural Gas ETF)as shown on the 15 minute chart is rising in an ascending parallel channel and is suitable
for a long buy entry when the indicators are triggered. The onslaught of winter cold, the
sanctions against Russian gas exports and inflationary pressure on commodities all bode well
for the trend up for natural gas on forex and equities markets. See also my idea linked below
for a view of the chart from the 4H time frame.
☄ Natural Gas Futures: This Is Ground Control To Major TomThis publication was partially created by ChatGPT AI, under request to Highlight Ten Factors That Could Drive Natural Gas Prices Below Zero in 2023.
Good or bad, y'all be the judge. But here's what ChatGPT said...
As an AI, I cannot guarantee the accuracy of such statements, but based on common knowledge, the following factors may be the reasons why natural gas prices drop below zero in 2023:
1. Growth in the use of alternative energy sources such as solar and wind energy.
2. Increasing US shale gas production, which will lead to an increase in global supply.
3. Reduced demand for natural gas due to switching to other types of fuel.
4. Increasing natural gas production in highly competitive countries such as Russia and Qatar.
5. The weakening of economic activity in various countries of the world, including China, the US and Europe.
6. Reducing inflation in various countries, which reduces the cost of natural gas.
7. A record increase in natural gas inventories caused by a reduction in demand and an increase in production.
8. Disputes between countries-suppliers and consumers of natural gas, which may lead to a decrease in exports and imports.
9. Increasing competition in the natural gas market from other producers such as Iran and Iraq.
10. Development of new technologies that make it possible to obtain energy from other sources without the use of natural gas.
Technical picture in Natural Gas Futures indicates the biggest YTD decline over the all history of Natural Gas Futures trading since early 1990x.
The main chart is adjusted for futures change All History Chart.
TELL Long Opportunity RevisedHave been waiting for the bottom to form for the past year, finally looks like it might be there for a rebound.
Price spent past couple weeks building around $.50 and today's boost definitely could have solidified the bottom.
I have yet to take this trade, however, since as I've stated in the past, the stock is pretty terrible and the company is in danger of running out of cash over the next 6-9 months IF they do not get FID on their Driftwood LNG Terminal in Louisiana.
Again, once (IF) that happens, price will likely go up 60 - 100% that day, which is something I probably would not want to miss out on.
However, if price breaks below $.50 from here and FID becomes less of a reality, the company will likely go bankrupt.
Trade with caution on this one, but don't be surprised if it completes Wave 1 within the next couple weeks.
Best of luck
TELL long opportunity*revised trade entry for my last post on TELL:
Price finally hit the bottom of the wedge which I'm sure many other TELL traders were waiting for.
The thing is though, that the macro story for the core of their business has never been better as demand for natural gas and LNG transfer will only increase as geopolitical tension rises in the Middle East and Russia continues their offensive, all while Biden admin is on track to completely deplete the SPR for the sake of keeping US oil prices stable.
TELL has a huge opportunity to explode here...
Though, they are yet to find a partner to secure FID in the amount of I believe $14.5b for their Driftwood LNG plant in Louisiana. The longer they continue construction without this decision being made, the higher their bankruptcy risk becomes. As soon as they get it, however, investors will pile in money and the impact on price will be monstrous.
Positive developments in FID situation should bring us to dashed line.
Securing of FID could break the uptrend, in an overly optimistic case, and likely over a 1-2 year timeframe.
Personally am waiting for Monday open before I make any entry -- **If price breaks below bottom trendline, I would be very hesitant about entering a long until a reclaim.**
Please let me know your thoughts below.
BOIL: Spring and Backtest with Hidden Bullish Divergence BOIL is preparing to shift out of the range as it Bullishly Diverges on the MACD during its spring and backtest and shifts out of the lower RSI Extremes.
We may just get a move to $90 and call it there, but I do think it's possible to see the $150s if this setup truly does result in the absolute bottom.
TELL LongLooking back into Tell for a long opportunity that I believe I entered at $1.20.
If you've ben following TELL for the past couple years, you'd know it as an excellent trading stock due to volatility. You also may know that They've been struggling to find an equity partner for financing their newest LNG terminal (Driftwood, in Louisiana; $14.5b cost), which, paired with frequent senior secured note offerings, have caused the stock to drop due to a bleak outlook for the company by investors.
However, it seems we have reached somewhat of a bottom, and while technicals look alright, we still await the announcement of an equity partner which would be a MASSIVE boost for the stock.
Keep an eye on this chart playing out, and be aware of the risk entailed with trading it; it is definitely an uphill battle for the company, as investors are weary of their ability to finish construction on Driftwood.
LNG testing overhead resistanceCheniere Energy presently testing channel resistance, able to absorb weekly buying pressures. From here, (LNG) can fall back to channel support, eliciting losses of 15% over the following 2-3 months. Inversely, a weekly settlement above channel resistance would elicit a buy signal where gains of 10% would be expected within 1-2 months, and gains of 20% would be anticipated over the following 5-6 months.
NatGas - No Moon Until DoomIn mid June, I had made a call that Natural Gas was about to rally, because price action and timing supported a move upwards.
Natural Gas - The Girl Who Hopes You Remember Her
But that call became abandoned as I enlightened and improved further, and began to note that rallies were sold off and lows kept being taken.
The trade degenerated into looking at a sweep over $3 and then a sweep over $2.9, and turned into abandonment.
Before we go far, I want to tell you that you need to keep your eyes on the situation with China.
The first thing you notice is that the propaganda machine and politicians are rarely going after "the Chinese Communist Party" but are always going after "China."
This is very strange. China is the world's only 5,000 year country and holds the largest population.
If you think about it even a little bit, the CCP would be so easy to topple, wouldn't it?
Considering the Party has killed a magnitude more of its own people in its century of murder than Hitler did among all races during his years of insanity.
And the CCP and former Chairman Jiang Zemin have the 24-year persecution and organ harvesting genocide against the Falun Dafa spiritual practice hanging over their head like the blade of a guillotine.
You have to keep this in mind and go study it. A really crucial part of the puzzle is that Xi Jinping, for all the criticism and targeting he gets/deserves, has never persecuted Falun Gong.
Instead, Xi's Anti-Corruption Campaign has been killing and ruining the Jiang Faction minions who have conducted and operated the persecution.
Xi has even protected Falun Gong in Hong Kong after fortifying his rule there with the National Security Law following the 2019 Heaven Will Eliminate the CCP protests.
All of this matters very much to the fossil fuels industry because there's a relationship between China and Russia, both in terms of production and demand, that changes greatly if something like the Ukraine War ends or drama over Taiwan suddenly enters nuclear brinkmanship.
Looking at current monthly bars, Natural Gas shows some kind of "Bear Flag."
What you're seeing, really, is an extended consolidation. This is actually potentially really bullish, to the upside, but we need price action to confirm it's time to go.
Unfortunately, July did not show us this.
The sweep of the $2 point and the lows in April was not enough to springboard the move, and that's really telling.
While many may tell you that natural gas is obviously going to a zero-handle, a look at the yearly bars shows such a thesis really does not make sense.
To the contrary, the 2020 pivot should, actually, hold. A classic super long term breakout and retrace.
Moreover, $10 was printed for literally one day in 2022, and that's very strange.
The problem with the moon turning full right now, is shown on 3 month candles, where this current little red blip only has one month left.
This is not a bullish continuation. It's important, in a bullish scenario, to see volume come in and price action to correspondingly reflect that producers want to sell at higher prices and will orca the waves for us normal people.
Moreover, in terms of the overall markets, as I post in this week's SPX call, we may be watching the equities/indexes bear market rally top for real.
SPX - The Sound of a Shattering Iceberg
As for what might be the news driver that harbingers the correction, it may very well be one of the 10 largest banks in America dumping for whatever reason emerges (watch out for commercial real estate):
Charles Schwab - The Harbinger Of The Next Crisis?
I also posted last week that it seems to me oil is about to head for a literal 3-handle.
Oil - A New Long Leg Down Soon Begins
And because we have problems with "Taiwan," which is to say the International Rules Based Order's desire to take over China via Taiwan while the Chinese Communist Party falls, I also believe that Taiwan Semiconductor (TSM) is set up as a probable long hedge through to the end of the year and into 2024:
TSM - Taiwan, Your Semiconductor Long Hedge
Now, in terms of natural gas ranging like it has, sharply dumping, and then beginning a new and major bull impulse, this is not without grounds, for this would be a fractal of the 2020 COVID dump-to-recovery play that saw a doubling into year end:
If this were to play out, we'd see something like $1.60 natural gas into $4.8 by the end of the year or Q1 2024.
After that, we may really see prices that exceed $10 and begin to flirt with all time highs at $15.
The fundamental factors that would cause a 10 bagger on a commodity that literally equates to most of the world's electricity production are fairly significant.
Especially considering "climate change" (lol "climate boiling") is attempting to be used as the pretext/excuse to export the Jiang-CCP Zero COVID social credit system worldwide in a way that far exceeds what was done during the pandemic.
And so for the call, I would say the "short signal" with the markets hanging out in thin air at present, while we're about to begin a new quarterly shift, is a break of the $2.4 level.
You'd want to short that break with a target meaningfully under $1.8 and then cover it without getting greedy.
At that point, it's time to look for longs, and if you're a long term position trader, this may be one of the best opportunities you'll come across.
But it may not really unfold until next year. And this assumes that my analysis is correct.
Right now, daily price action is just showing failure swings, but nobody has stepped in yet to give it the push down the stairs it really needs.
GLNG Golar LNG Limited Options Ahead of EarningsAnalyzing the options chain and the chart patterns of GLNG Golar LNG Limited prior to the earnings report this week,
I would consider purchasing the $22.50 strike price Calls with
an expiration date of 2023-9-15,
for a premium of approximately $2.12.
If these options prove to be profitable prior to the earnings release, I would sell at least half of them.
Looking forward to read your opinion about it.
BOIL- Go Long SetupBOIL has had a busy month with the resurgence of natural gas prices and the reverse
split six trading days ago. I analyze it as having further upside. On the 30-minute chart
I have added two anchored VWAPs to the left on separate pivot points. This serves
to make out dynamic support and resistance. Price has crossed over the mean VWAP zone
which is between the heavy black lines. In confluence with that, it has crossed over the
POC line of the volume profile represents the price point with the highest total trading volume
over the visible time interval. Above price are the two targets being one and two standard
deviations above the mean aVWAP. The volume indicator shows increasing relative volume
overall as a sign of accumulation which generally results in price appreciation from
the demand trend. I will set the stop loss at $.10 below the POC line and take a long
position. One third of the position will come off upon each target advancing the stop loss to
above the entry and making the trade risk-free. Another third with TP2 and finally the
The remaining third will run on a trailing stop so I do not spend time micromanaging a smaller
position. I believe that my overall bullish bias will be rewarded yet again over the near term.
Is KOLD getting chilled out ?KOLD's trend down may be continuing. They say weather climate conditions are for things
heating up. this trader concurs albeit from one of the traditional hottest places in the entire
USA and so with that bias come hell or bitter winter chill. On the chart, a persistent trend
down for KOLD underneath the Ichimoku cloud of the Luxalgo indicator is easily seen.
Luxalgo's Bollinger Band oscillator shows that price is riding down along the lower BB band
without any outlook for a reprive. Furthermore, price is well below the high volume
area of the volume profile and in the lowermost bands of the anchored VWAP. On the MACD
indicator, the MACD and signal are both trending down and well below zero.
In short, the value of KOLD is crashing down. Any traders long are best to consider liquidating
while any value remains. I am not long KOLD and happily continue my long positions in
BOIL, the inverse of it until analysis dictates otherwise.