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FxWirePro: Natural gas target extended towards $2.3 per MMBtu

As the winter faded in North America and was not sufficiently chilling to bring down the record high inventory we changed our outlook in Natural gas in early January this year, despite our long call reaching two targets ($3.1 and $3.7 per MMBtu). On January 10th, we at FxWirePro called on our readers to change course in the short to medium term and go short in natural gas at $3.14 per MMBtu and with a target of $2.7 per MMBtu.

On 20th February, as the natural gas price reached $2.76 per MMBtu, we extended our target to $2.5 per MMBtu area and that was reached last week when price bottomed around $2.51 per MMBtu. In this article, we would like to extend our short side target further towards $2.3 per MMBtu.

Kindly note, if positions are booked, we would like to recommend waiting in the sideline as the price is expected to correct after reaching an important level of $2.5 per MMBtu. The correction could reach as high as $2.9 per MMBtu.

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