Natural Gas Price Analysis for June 30, 2017

Natural gas prices whipsawed moving higher following the smaller than expected build in natural gas inventories but was unable to hold gains over resistance near a downward sloping trend line and eventually moved lower into the close. Prices generated an outside day which is a higher high a lower low and a lower close.  Support is seen near the 10-day moving average at 2.99.  Momentum remains positive as the MACD histogram prints in the black with an upward sloping trajectory which points to higher prices.

Inventories Rose Less than Expected

The Energy Information Administration reported that working gas in storage was 2,816 Bcf as of Friday, June 23, 2017. This represents a net increase of 46 Bcf from the previous week, compared to expectations of a 52 Bcf increase. Stocks were 319 Bcf less than last year at this time and 181 Bcf above the five-year average of 2,635 Bcf. At 2,816 Bcf, total working gas is within the five-year historical range.