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Technical Natural Gas Report for December 2, 2016

By:
David Becker
Published: Dec 2, 2016, 05:08 UTC

Natural gas prices surged following a reported from the Department of Energy that showed a larger than expected draw in gas inventories. Additionally,

Technical Analysis Natural Gas for December 02, 2016

Natural gas prices surged following a reported from the Department of Energy that showed a larger than expected draw in gas inventories. Additionally, colder than normal weather is expected to cover all the United States over the next 8-14 days, which should increase natural gas demand.  Resistance is seen near the October highs at 3.65, while support is seen near the 10-day moving average at 3.21. Momentum remains positive as the MACD (moving average convergence divergence) index prints in the black with an upward sloping trajectory which points to higher prices.

The EIA reported that working gas in storage was 3,995 Bcf as of Friday, November 25, 2016,. This represents a net decline of 50 Bcf from the previous week, compared to the 48 Bcf decline expected. Stocks were 24 Bcf higher than last year now and 235 Bcf above the five-year average of 3,760 Bcf. At 3,995 Bcf, total working gas is above the five-year historical range.

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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