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Natural Gas
Since our last report posted on March 12th 2013, Natural Gas prices continued on their recent upside sprint that started on Feb 22nd and reached the mechanically derived upside Head & Shoulders price target of $3.89MMBtU originally posted on our report of September 14th 2012. While H&S patterns validate on average about 60% of the time, it is unusual to see one unfold in such a classic, step-by-step manner from its inception on April 20th, 2012 till it just hit the upside H&S price projection with precision. For those interested in technical charting, this particular H&S example is one worth keeping and referring to as it is a text book model of how this pattern arises and moves forward that does not often reach full maturity. In the fundamental department we note that even with the recent 18% surge in NatGas, prices are still well below the five year average of $4.862MMBtU at the close of 2012. Still plenty of upside room for production, demand and supply that would seem to suggest an odd sort of equilibrium with a strong upside bias exists at present. Also please note that this change of seasons period is one of the two best periods of the year in which to procure energy at relatively good prices.

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Electricity
Since our last report posted on March 12th the PJM regions got slapped around by two more “early Spring” snow storms and the chart’s bungee jumping highlights the rapidity of the weather moves as well as the spiking demand for energy with which to beat back the colder than normal temps. Fortunately we can report that while the next ten days will continue to spawn cooler than normal temps for the mid and upper-mid west, all the way down the Mississippi River and north-eastward to much of New England. But take heart, NOAA predicts that by mid-April much warmer than normal temps will begin to blow into all the PJM regions.

Want to learn more? Review our Daily Pricing Updates as well as Fundamental and Regulatory Analysis here: http://www.worldenergy.solutions/tag/market-edge/