From Comtex this AM:
N.Y. NATURAL GAS FUTURES CALLED TO OPEN SLIGHTLY LOWER
New York-June 10-FWN--THE NATURAL GAS FUTURES ARE SEEN
opening near unchanged to down 2 cents to begin trading
this morning. Traders report that OTC trading finds July gas
futures bid at $1.92 and offered at $1.93 after closing
Monday at $1.938, down 3.8 cents.
The July futures closed below key support at $2.00 for
the second time this week after attempting to rally back
above this price level in early trading on Tuesday. The lack
of follow-through buying after July tested resistance at
$2.035 sent prices spiraling back to test key underlying
support at $1.93 Tuesday, a new 14-month low.
Weather is expected to heat up across the South again
this week. But the latest National Weather Service 6- to 10-
day forecast suggests another cool-down next week for most
of the nation and that will further reduce any air
conditioning demand for natural gas, traders said.
Overall, this week's heat in the South is not expected
to support this market given the nearly 40% surplus of gas
already in the ground compared to last year and some talk
that there could be another large injection of gas supplies
in this week's American Gas Association (AGA) inventory report.
Trade talk focuses on gas injections between 80 and
110 bcf compared to a build of 91 bcf a year ago and a 106
bcf injection last week, a floor broker commented. He said
estimates have been rising since the beginning of the week.
However, another floor broker said the market remains
vulnerable to a short-covering rally given the increased
speculative shorts in the market and the bearish
expectations for the AGA. "We could be looking at a possible
sell-the-rumor, buy-the-fact trade," he added. But he added
that the market still remains mostly a technical game and
signs of lost downside momentum will need to be followed by
actual stability and upside momentum to shift the bearish trend.
Technical support for July natural gas futures is seen
at $1.91, $1.88 and $1.78, with resistance seen at $2.00,
$2.03, $2.07, $2.11, $2.14 and $2.18.
Overnight trading on ACCESS at the NYMEX witnessed July
natural gas futures trading in a narrow range of $1.95 to
$1.929 and were last at $1.929, down 0.9 cent.
*** end of story ***
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