Natural Gas Price Analysis for July 28, 2017
Natural gas prices moved higher on Thursday getting a lift following a smaller than expected build in natural gas inventories reported by the Energy Information Administration. Prices rebounded 2.33%, pushing up to resistance near the 10-day moving average at 2.99. Support is seen near the weekly lows at 2.88. Momentum is neutral as the MACD (moving average convergence divergence) index prints near the zero-index level which the MACD histogram has a flat trajectory which points to consolidation.
Storage Grew Less Than Expected
The EIA reported that working gas in storage was 2,990 Bcf as of Friday, July 21, 2017. This represents a net increase of 17 Bcf from the previous week, compared to the 24 Bcf injection expected. Stocks were 302 Bcf less than last year at this time and 111 Bcf above the five-year average of 2,879 Bcf. At 2,990 Bcf, total working gas is within the five-year historical range.
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