Natural Gas Price Analysis for September 1, 2017

Natural gas prices moved higher on Thursday following a smaller than expected build in inventories reported by the Department of Energy. Prices broke through trend line resistance near 3.01, and is poised to test target resistance near 3.10. Momentum has turned positive as the MACD (moving average convergence divergence) index recently generated a crossover buy signal. The MACD histogram is printing in the black with an upward sloping trajectory which points to higher prices.

Inventories Rose Less than Expected

The EIA reported that working gas in storage was 3,155 Bcf as of Friday, August 25, 2017. This represents a net increase of 30 Bcf from the previous week, compared to estimate that it would rise by 32 Bcf. . Stocks were 239 Bcf less than last year at this time and 8 Bcf above the five-year average of 3,147 Bcf. At 3,155 Bcf, total working gas is within the five-year historical range.