Technical Natural Gas report for September 30, 2016

Natural gas prices moved lower on Thursday despite a smaller than expected build in inventories.  Prices were unable to recapture resistance near the 10-day moving average at 3.04. Support is seen near an upward sloping trend line that connects the low in May to the lows in September and comes in near 2.90.  Momentum has turned negative as the MACD (moving average convergence divergence) index generated a sell signal. This occurs as the spread (the 12-day moving average minus the 26-day moving average) crosses below the 9-day moving average of the spread.

According to the EIA, working gas in storage was 3,600 Bcf as of Friday, September 23, 2016. This represents a net increase of 49 Bcf from the previous week. Expectations were for an increase of 55 Bcf. Stocks were 90 Bcf higher than last year at this time and 220 Bcf above the five-year average of 3,380 Bcf.