Natural Gas Price Prediction – Prices Drop on Inventory Build

No tropical cyclones are expected over the next 48-hours
David Becker
Natural Gas

Natural gas prices whipsawed rising more than 4.5% on the open, but traders sold at resistance and the downward trajectory accelerated after a larger than expected build in natural gas inventories was reported by the Energy Information Administration. There are no disturbances in the Atlantic that are expected to become tropical cyclones over the next 48-hours. Additionally, the weather is expected to be colder than normal over the next 8-14 days.

Technical Analysis

Natural gas prices whipsawed jerking higher in the early AM only to see prices reverse following the latest inventory report from the Department of Energy. Resistance is seen near the 50-day moving average at 2.34.  Support is seen near the 10-day moving average at 2.21. Short term momentum is positive as the fast stochastic recently generated a crossover buy signal. Medium term momentum is neutral as the MACD (moving average convergence divergence) histogram prints in the red with a flat trajectory which points to consolidation.

Natural Gas Inventories Increased by More than Expected

The Department of Energy reported that working gas in storage was 2,634 Bcf as of Friday, July 26, 2019, according to EIA estimates. This represents a net increase of 65 Bcf from the previous week. This compares to expectations that natural gas stockpiles would grow by 41 Bcf, according to Estimize. Stocks were 334 Bcf higher than last year at this time and 123 Bcf below the five-year average of 2,757 Bcf. At 2,634 Bcf, total working gas is within the five-year historical range.

Don't miss a thing!
Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Latest Articles

See All

Expand Your Knowledge

See All
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.