Technical Analysis Natural Gas for 11/6/15

Natural gas prices soared higher climbing more than 5% following a report from the Department of Energy that showed a small than expected injection of gas into storage.  According to the EIA, working gas in storage was 3,929 Bcf as of Friday, October 30, 2015. This represents a net increase of 52 Bcf from the previous week, compared to the 62 Bcf expected. Stocks were 371 Bcf higher than last year at this time and 147 Bcf above the 5-year average of 3,782 Bcf.

Prices are poised to test resistance near 2.40 and then the 10-day moving average at 2.50.  Momentum remains negative with the MACD printing in the red, but the trajectory is changing and poised to generate a buy signal. The RSI has moved higher with price action, moving above the oversold trigger level of 30.