Have Natural Gas Prices Hit A Bottom?

Natural gas prices are falling, and the speculators have cut their U.S. natural gas net long positions for the fourth straight week. Does this indicate further weakness, or is this a contrarian buy signal? Let’s analyze the fundamentals and the chart pattern of natural gas to arrive at an answer. Natural gas is mainly used for electricity generation. During summers and winters, the demand for electricity increases, hence, the demand for natural gas goes up. After all, about 50 percent of all U.S. households use natural gas for heating purposes.…

Shares