David Becker
Add to Bookmarks

Natural gas prices consolidated on Thursday, forming an inside day which is a sign of indecision. This movement followed an inline report from the Department of energy which showed that natural gas inventories rose by 20 Bcf. According to the National Oceanic Atmospheric Administration, the weather is expected to become cooler than normal for most mid-west for the next 6-10 and 8-14 days.

Technical analysis

Natural gas prices moved sideways, forming an inside day as the high was lower than the prior days high and the low was higher than the prior days low. Prices continue to create a bear flag continuation pattern. Resistance is seen near the 10-day moving average at 2.57. Support is seen near the March lows at 2.35. Momentum is flat. The fast stochastic is printing near the signal line. The MACD (moving average convergence divergence) histogram has a flat trajectory which points to additional consolidation.

Know where Natural Gas is headed? Take advantage now with 

Trading Derivatives carries a high level of risk to your capital and you should only trade with money you can afford to lose. Trading Derivatives may not be suitable for all investors, so please ensure that you fully understand the risks involved, and seek independent advice if necessary. A Product Disclosure Statement (PDS) can be obtained either from this website or on request from our offices and should be considered before entering into a transaction with us. Raw Spread accounts offer spreads from 0.0 pips with a commission charge of USD $3.50 per 100k traded. Standard account offer spreads from 1 pips with no additional commission charges. Spreads on CFD indices start at 0.4 points. The information on this site is not directed at residents in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.


Inventories Rise In Line with Expectations

Natural gas in storage was 1,784 Bcf as of Friday, April 2, 2021, according to the EIA. This rise in stockpiles represents a net increase of 20 Bcf from the previous week. Expectations were for a 20 bcf build, according to survey provider Estimize. Stocks were 235 Bcf less than last year at this time and 24 Bcf below the five-year average of 1,808 Bcf. At 1,784 Bcf, the 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

Trade With A Regulated Broker