Trader Says NYMEX NatGas Price “Hammer Reversal” Targets $4.88

On Monday, the NYMEX “front month” futures price for natural gas dived, down 20.5 cents (4.5%) in a single day (see 2 NOAA Graphics Drove NYMEX NatGas Price Down 20.5 Cents Yesterday). The reason? A forecast released by NOAA (the National Oceanic and Atmospheric Administration) that shows a warm trend in the Eastern U.S. through the end of this month. And just like that, the NYMEX price reversed yesterday, gaining 17.9 cents per million British thermal units (MMBtus), or 4.10% to $4.55, making up most of Monday's loss. Traders call it a "hammer reversal." Why the drastic change? Once again, weather.

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