Technical Analysis Natural Gas for November 20, 2015

Natural gas prices reversed an early gain as warmer than expected weather continues to blanket the northeast of the United States.  The reversal came following a report from the Energy Information Administration that showed another build in inventories.  According to the EIA, U.S. natural gas stocks increased by 15 billion cubic feet for the week ending November 13. Analysts were expecting a storage increase of around 20 billion cubic feet. The five-year average for the week is an increase of around 30 billion cubic feet, and last year’s addition for the week totaled 40 billion cubic feet.

Prices sliced thought support near the 20-day moving average at 2.32 and continued lower to 2.27.  Resistance is seen near the 20-day moving average and then 2.40.  Support is seen near the November lows at 2.25.  Momentum is positive with the MACD printing in the black with an upward sloping trajectory.