The EIA reported a 46 bcf Injection for the week ending July 13, 2018. The injection was at average for this week of the year, but well below the average of expectations at a 57 bcf injection, with a range of a 49 injection to a 61 bcf injection.
Prices jumped over 4.5 cents when the report was released. Prices remained up and ended the trading day at the highs, up 5 cents.
Since mid-June there have been 5 occasions when the market traded up during this downside move of over 30 cents (-11%). Today was the 6th occasion, up 5 cents. This is not necessarily the beginning of trend. A return to the $2.85 – $2.86 level would indicate an uptrend in prices. As we have mentioned before, we would not recommend going short in this market, but to wait for an established upper trend in prices before trading from the long side of prices, as the fundamentals of supply and demand remain bullish.
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