Natural Gas Prices Slide and Remain Rangebound
Natural gas prices moved higher on Thursday following the Department of Energy’s inventory report. The weather forecast has changed to show cooler weather in the mid-West. According to a report from NOAA, the weather in the U.S. is expected to be colder than normal all the way to Texas from Chicago in the United States for the next 6-10 and 8-14 days.
The EIA estimates that inventory withdrawals in February were 627 billion cubic feet and that natural gas inventories ended the month at 1.6 trillion cubic feet . The EIA expects natural gas inventories to fall by about 95 Bcf in March, ending the withdrawal season at about 1.5 Tcf, which would be 10% less than the five-year average for this time of year.
Natural gas prices consolidated on Thursday. Support is seen near the 10-day moving average at 4.712. Resistance is seen near a downward sloping trend line that comes in near 5.20.
Short-term momentum has turned positive as the fast stochastic generated a crossover buy signal. Medium-term momentum has turned positive. The MACD (moving average convergence divergence) index is making a crossover buy signal. This scenario occurs when the MACD line (the 12-day moving average minus the 26-day moving average, crosses above the 9-day moving average of the MACD line.