Technical Analysis Natural Gas for 8/28/15
Natural Gas prices moved lower on Thursday following a report from the Department of Energy that showed a slightly higher than expected increase in inventories. The U.S. Energy Information Administration said gas stockpiles rose 69 billion cubic feet in the week ended Aug. 21, higher than the 61 bcf estimate projected in a consensus estimate of analysts. Total inventories now stand at 2.9% above average, with the market fully recovered from the severe supply drawdown prompted by the harsh winter of 2014.
Support on natural gas prices is seen near an upward sloping trend line that connects the lows in April to the lows in June comes in near 2.62. Resistance is seen near the 50-day moving average near 2.79. Momentum is negative with the MACD printing in the red with a downward sloping trajectory.