Thoughts on NG Reaching $5.00 by EOW
Watching the action in $NG today, particularly the move down to 5.325 and subsequent struggle to reclaim much upside, I'm forming a probabilistic view on a significant move lower. The bearish momentum, despite the daily range, feels more than just a retracement. Considering the demand side remaining somewhat muted relative to storage figures, and the broader macro narrative, I'd assign a roughly 60% probability to $NG testing the $5.00 level before end-of-week close. This isn't a hard prediction, but rather an assessment of the current technical and fundamental setup suggesting a higher likelihood of further downside pressure, especially if 5.30 doesn't hold firm on subsequent tests. The risk, of course, is a sudden weather-related demand spike or an unexpected supply disruption, but absent those, the path of least resistance looks south for now.
Interesting take. I'm seeing similar price action but wonder if the geopolitical factors could provide an unexpected floor, or even a bounce.