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Is This Natural Gas Rally for Real? (Part 3 of 3) (Continued from Part 2) Bullish momentum
Natural gas futures for June delivery are showing a potential uptrend channel. Prices are driven by warmer weather estimates and the consensus of increasing inventories over this week. The EIA’s (U.S. Energy Information Administration) inventory report due on May 7 will be the key catalyst for gas prices this week.
Key pivots
Prices declined for the first time in the last six trading sessions. The current momentum could push gas prices to the key resistance of $2.90 per MMBtu (British thermal units in millions). Gas prices tested this mark in March 2015. Warmer weather played a crucial role in driving natural gas prices higher. In contrast, support is seen at $2.70 per MMBtu. Prices hit this mark multiple times in April 2015. The consensus of rising inventory and oversupply concerns will drive gas prices lower.
Gas prices are trading below their 100-day moving average of $2.87 per MMBtu. The downward channel breakout could drive gas prices as high as $2.90 per MMBtu. However, the 14-day RSI (relative strength index) is signaling that prices could fall. Profit-booking could also drive gas prices lower.
The VelocityShares 3X Long Natural Gas ETN (UGAZ) and the United States Natural Gas Fund LP (UNG) are negatively affected by lower gas prices. Oil and gas stocks like Cimarex Energy (XEC), Bill Barrett (BBG), and Laredo Petroleum (LPI) are also negatively impacted from lower gas prices. These stocks have a gas production mix that’s greater than 40% of their total production. They account for 3.99% of the Spider Oil and Gas ETF (XOP).
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Bill Barrett Corporation
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CODE : BBG |
ISIN : US06846N1046 |
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ProfileMarket IndicatorsVALUE : Projects & res.Press releasesAnnual reportRISK : Asset profileContact Cpy |
Bill Barrett corp is a exploration company based in United states of america. Bill Barrett corp is listed in Germany and in United States of America. Its market capitalisation is US$ 534.1 millions as of today (€ 432.6 millions). Its stock quote reached its highest recent level on June 05, 2015 at US$ 9.67, and its lowest recent point on March 19, 2018 at US$ 4.84. Bill Barrett corp has 110 349 217 shares outstanding. |