Natural Gas Price Analysis for June 23, 2017

Natural gas prices whipsawed closing slightly higher after testing both support and resistance levels following a slightly larger than expected inventory report released Thursday by the Department of Energy.  Prices initially moved higher early, testing resistance near the 10-day moving average at 2.98.  Following the larger than expected build in stocks, prices tested trend line support which is seen near an upward sloping trend line that comes in near 2.88. Momentum remains negative as the MACD (moving average convergence divergence) histogram prints in the red with a downward sloping trajectory which points to lower prices.

Inventories Increased More than Expected

The EIA reported that working gas in storage was 2,770 Bcf as of Friday, June 16, 2017. This represents a net increase of 61 Bcf from the previous week, and compares to expectations of a 58 Bcf increase. Stocks were 324 Bcf less than last year at this time and 207 Bcf above the five-year average of 2,563 Bcf. At 2,770 Bcf, total working gas is within the five-year historical range.