Natural gas prices whipsawed first moving higher but was unable to recapture resistance following a larger than expected build in natural gas inventories. Resistance is seen near the 10-day moving average at 2.98, while support is seen near the November 2016 lows at 2.81. Momentum has turned negative as the MACD (moving average convergence divergence) index generated a crossover sell signal. This occurs as the spread (the 12-day moving average minus the 26-day moving average) crosses above the 9-day moving average of the spread.
Storage Increased More than Expected
The EIA reported that working gas in storage was 2,888 Bcf as of Friday, June 30, 2017. This represents a net increase of 72 Bcf from the previous week, compared to expectations of a 66 Bcf increase. Stocks were 285 Bcf less than last year at this time and 187 Bcf above the five-year average of 2,701 Bcf. At 2,888 Bcf, total working gas is within the five-year historical range.
This article was originally posted on FX Empire