[ad_1]
“One of the best laid schemes o’ mice an’ males. Gang aft a-gley”.
–Robert Burns
Or as a Yiddish saying goes: “Man plans, God laughs.” There isn’t any higher instance of this than what has occurred with pure fuel this month. With vitality provides being challenged by Russia’s invasion of Ukraine, and the compelled discount of U.S. vitality manufacturing, it’s logical to imagine that pure fuel could be a ‘certain factor’ as an funding goal. However no. This morning the USA Pure Fuel Fund (UNG) was down nearly -30% from final week’s excessive. What the . . . ?!
Effectively, there’s a cause for right this moment’s down transfer. Earlier this month a liquefied pure fuel (LNG) facility in Freeport, Texas, which produces about 20% of U.S. manufacturing of LNG, had a fireplace, which prompted it to close down. The unique estimate to get it again up and operating was three weeks, however this morning that was revised to the top of this yr, which means that that there can be a scarcity of LNG lasting many months. Because the Freemont facility produces LNG for export, that pure fuel can be obtainable for the home market whereas the ability is down. This improve in provide ought to trigger the worth to go down. Which is what we noticed this morning.
Whereas -30% down appears extreme on its face, a better take a look at the chart reveals that UNG is extremely unstable, with strikes far in extra of that in each instructions inside the final yr. In that context, this latest decline does not appear that severe. There’s a fairly good trying help line the place we would see some firming and the start of a brand new advance. Contemplating how severe the vitality scarcity is changing into, that doesn’t appear out of the query.
— Carl Swenlin
Technical Evaluation is a windsock, not a crystal ball. –Carl Swenlin
(c) Copyright 2022 DecisionPoint.com
Useful DecisionPoint Hyperlinks:
DecisionPoint Alert Chart List
DecisionPoint Golden Cross/Silver Cross Index Chart List
DecisionPoint Sector Chart List
Price Momentum Oscillator (PMO)
Swenlin Trading Oscillators (STO-B and STO-V)
DecisionPoint just isn’t a registered funding advisor. Funding and buying and selling choices are solely your accountability. DecisionPoint newsletters, blogs or web site supplies ought to NOT be interpreted as a advice or solicitation to purchase or promote any safety or to take any particular motion. “
Carl Swenlin is a veteran technical analyst who has been actively engaged in market evaluation since 1981. A pioneer within the creation of on-line technical assets, he was president and founding father of DecisionPoint.com, one of many premier market timing and technical evaluation web sites on the net. DecisionPoint makes a speciality of inventory market indicators and charting. Since DecisionPoint merged with StockCharts.com in 2013, Carl has served a consulting technical analyst and weblog contributor.
Learn More
Subscribe to DecisionPoint to be notified every time a brand new put up is added to this weblog!
[ad_2]
Source link