(ZT) This week NG touched $4 and shutdown two time and ended up

 

Would 3rd time be magic to go through?

Here are the high level argument among bulls and bears:

Bulls:

1. Storage Level is fantastic, foresee more withdrawals in coming report.
2. Weather is still cold and heating demand in metro area is larger than 5 yr average.
3. Supply side is controlled that there are no sudden spikes.

Bears:

1. It went up for many days and it needs correction. (Over bought).
2. Weather isn't going to last. We will see spring in upcoming weeks.
3. NG to coal switching has to happen.

Normally, when equity is bullish for so many days, it does take a break. Either it corrects it or go side ways before it moves up again. If you look at 6 months chart, UNG is going for near $23. Resistence has not met but NG price near $4 is showing some sign of sell off. So, chart based resistence was over written this week. On the other hand, current storage held bears from taking control over this Thursday as it was perfect time to bring UNG down further about 10% correction needed.