Bullish trend in LNG is developing

I see a long trade in JKM LNG.

It has risen 4% today, currently trading at ¥1,775

The price action is constructive and first stop may be around ¥2,500.

It doesn’t matter if any rise is defined as a bounce, a rebound in demand, a short squeeze or mean reversion…..

JKM LNG (as priced in Yen) appeared in the Oversold list through the late May/early June editions of Macro Extremes when the price was around ¥1,550.

Macro Extremes (week ending June 9, 2023)

Since then, the margin of safety has faded so I’ll be sharp on this one.

This sentiment is a reversal of my warnings of peaking LNG prices over the past couple years. Those notes can be searched and found within my blog.

Furthermore, there is a reasonable correlation between LNG prices and the U.S. inflation rate……

August 8, 2023

by Rob Zdravevski

rob@karriasset.com.au

* these are my own notes, not personal advice to the reader.