Natural gas prices moved high on the session driving up to resistance near the 10-day moving average at 2.915. Friday’s lows were higher than Thursday’s lows, making a spike down which is a pattern that leads to higher prices. Support is seen near the October lows at 2.79. Additional resistance is seen near the October highs at 3.036. Momentum is neutral as the MACD (moving average convergence divergence) histogram prints near the zero-index level with a flat trajectory which reflects consolidation.
Inventories are Near 5-year Average
Prices have been chopping around as inventories remain near the 5-year average, but the weather has been warmer than normal reducing heating demand in the autumn. Inventories will begin to draw at the beginning of November, and will only gain traction if the weather becomes colder than normal.