Shale questions mounting
A forecast for cool weather in the US has given a big lift to battered natural gas prices. Gas prices are down about 25% from a year ago but up more than 6% today with the NOAA forecasting colder-than-normal temperatures in the US from Nov 2-6. That will mean more demand for heating.
At the start of the month, I wrote about the trend in natural gas strength in Oct-Nov and the technicals could also now be a tailwind. The rally today completed an inverted head-and-shoulders pattern on the daily chart. The measured target is about $2.60, which is a further 7% rally from here.
