By FXEmpire.com

Analysis and Recommendations:

Natural Gas continues to surprise investors with a spark of life, moving up today, at trade at 2.479. A single report from the EIA earlier this week showing the power producers were switching to less expensive natural gas, and away from coal has boosted the market, but this is not a recovery for NG just a little blimp up. Natural Gas inventories remain high with lower demand, because of the mild winter and the forecast of a mild spring and early summer.

This week’s inventory was a small positive showing that the late cold spell to hit the northeast consumed some of the extra supplies. Although the electric producers have been able to make a small switch, in the longer term, they have ongoing contracts for coal well into the future; these contracts would have to expire before we would see a much larger demand on NG. Expect to see NG around the 2.32-2.36 range; perhaps this is a good sell opportunity.

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Originally posted here