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Technical Analysis Natural Gas for November 26, 2015

By:
David Becker
Published: Nov 26, 2015, 04:12 UTC

Natural gas prices edged lower on Wednesday but settled well off their lows following a larger than expected build in natural gas inventories.  Resistance

Technical Analysis Natural Gas for November 26, 2015

Natural gas prices edged lower on Wednesday but settled well off their lows following a larger than expected build in natural gas inventories.  Resistance on natural gas is seen near the 20-day moving average at 2.28, while support is seen near the November low at 2.05.  Momentum remains negative with the MACD (moving average convergence divergence) index printing in the red, but the trajectory is relatively flat, pointing to consolidation. The relative strength index (RSI) is printing a reading of 41, which is in the middle of the neutral range and also reflects consolidation.

The U.S. Energy Information Administration reported Wednesday that U.S. natural gas stocks increased by 9 billion cubic feet for the week ending November 20. Analysts were expecting a storage increase of around 4 billion cubic feet. The five-year average for the week is a withdrawal of around 36 billion cubic feet, and last year’s withdrawal for the week totaled 141 billion cubic feet.

Technical Analysis Natural Gas for November 26, 2015
Technical Analysis Natural Gas for November 26, 2015

About the Author

David Becker focuses his attention on various consulting and portfolio management activities at Fortuity LLC, where he currently provides oversight for a multimillion-dollar portfolio consisting of commodities, debt, equities, real estate, and more.

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