GAZB - Natural Gas Market Weekly Overview: Technicals Are Bullish But Supply-Demand Balance Is Mostly Bearish
This report covers the week ending August 16, 2019.
Technicals
Technically, the short-term trading bias is still bullish, but the bears are not giving up and seem prepared to short any rally. September contract has broken above the short-term symmetrical triangle (see the chart below) but bounced off the upper bound of a long-term descending wedge/descending channel. A re-test of 2.200-2.180 is now increasingly likely.
Source: CME Group
Total Demand
We estimate that aggregate demand for American natural gas (consumption + exports) totaled around 635 bcf for the week ending August 16 (down 1.3%