Natural Gas Price Analysis for October 6, 2017

Natural gas prices attempted to rebound on Thursday following a report from the U.S. Department of Energy that showed a smaller than expected build.  Prices were unable to hold on to gains and slid back to unchanged. Resistance is seen near the 10-day moving average near 2.98, while support on natural gas is seen at an upward sloping trend line that comes in at 2.90. 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 Grew by less than Expected

Working gas in storage was 3,508 Bcf as of Friday, September 29, 2017, according to EIA estimates. This represents a net increase of 42 Bcf from the previous week, compared to a 51 Bcf draw expected. Stocks were 161 Bcf less than last year at this time and 8 Bcf below the five-year average of 3,516 Bcf. At 3,508 Bcf, total working gas is within the five-year historical range.