Technical Analysis Natural Gas For July 28, 2016

Natural gas prices consolidated on Wednesday ahead of the Fed decision and prior to Thursday’s release of the Department of Energy’s inventory report.  Inventories remain at record levels for this time of year, and while the weather has been warmer than normal, driving up cooling demand, inventories remain robust.
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Support on natural gas prices is seen near an upward sloping trend line that connects the lows in May to the lows in July and comes in near 2.63.  Resistance is seen near the 20-day moving average at 2.73.  The pattern is one that is more of a topping pattern than a continuation pattern, which could lead to more consolidation.  The relative strength index (RSI) is printing a reading of 47, which is in the middle of the neutral range and reflects consolidation.