Natural Gas Price Analysis for September 22, 2017

Natural gas prices tumbled on Thursday slicing through short-term support near the 10-day moving average at 3.03, following a larger than expected build in inventories reported on Thursday by the Department of Energy. Support is seen near an upward sloping trend line that comes in near 2.92. Resistance is seen near former support near the 10-day moving average. Momentum has turned negative as the MACD (moving average convergence divergence) index generated a crossover sell signal.

Inventories Rose More than Expected

The EIA reported on Thursday that working gas in storage was 3,408 Bcf as of Friday, September 15, 2017. This represents a net increase of 97 Bcf from the previous week, compared to expectation that inventories would rise 90 Bcf.  Stocks were 136 Bcf less than last year at this time and 67 Bcf above the five-year average of 3,341 Bcf. At 3,408 Bcf, total working gas is within the five-year historical range.