A few weeks ago, I had the honour of interviewing Serafino Iacono, Chief Executive Officer and Director for NG Energy International Corp, which trades by the ticker $GASX.V on the TSX Venture Exchange or $GASXF on the OTC Exchange. He was well diverse with immense knowledge on Natural Gas, along with many other commodities. He is also the Executive Chairman of Gran Colombia Gold Corp ($GCM.TO or $TPRFF on OTC exchange). A very casual take on $NG in a country such as Colombia, current cash flow and expectations for SINU-9.
With the recent mass-selling in $NG due to a much warmer than anticipated winter, this has put some scare on the sector. However, it appears that we are reaching some near-term support out of an 80 day ranging average. I know what everyone is thinking – that near-term quarterly bearish engulfing for January is looking quite unpleasant, but the quarter isn’t over just yet. This is a very crucial spot for $NG currently, as if we can manage to hold off this area, the quarterly chart for NGK22 is setting up nicely. I’ve decided to leave this sector on very close watch heading into year-end and the new year, as I’m quite interested to see how this plays out in Q1 with winter months approaching.
What I found interesting, was how little impact the recent declining $NG prices had on $GASX.V ($GASXF), which is what peaked my interest.
From a money management viewpoint, I was interested to see whether or not producers and money managers were transitioning away from $NG during this correction. Although there has been a steady decrease over the fall with Natural Gas prices falling, it seems we have hit a stabilization point.
Nonetheless, weather isn’t something we can quite control which is what makes this sector as fascinating as it is. Coming from a power and gas background myself, as well as growing up in an oil driven city, the energy sector will always be a point of interest for me. Cheers to a great year-end and a prosperous New Year.