Natural Gas Price Analysis for April 28, 2017

Natural gas prices generated an inside day on Thursday, following the Energy Information Administration’s report on inventories. The indecision was reflected by a higher low and a lower high.  Prices continue to form the right shoulder of a head and shoulder pattern which is similar to the pattern seen in crude oil. Support is seen near the 10-day moving average at 3.23. Resistance is seen near the April highs at 3.4.  Prices are higher as natural gas rolled to the June contracts.

Storage Grew More than Expected

According to the EIA, working gas in storage was 2,189 Bcf as of Friday, April 21, 2017. This represents a net increase of 74 Bcf from the previous week. Expectations were for a 72 Bcf rise. Stocks were 358 Bcf less than last year at this time and 299 Bcf above the five-year average of 1,890 Bcf. At 2,189 Bcf, total working gas is within the five-year historical range.