Natural Gas Price Analysis for June 26, 2017
Natural gas prices held support level and consolidated some of the weekly loss as prices were down 3.5% for the week. Lofty storage levels than increased this week more than expected continues to weigh on natural gas. Support is seen near an upward sloping trend line that comes in near 2.88. Resistance is seen near the 10-day moving average at 2.98. Negative momentum is decelerating as the MACD (moving average convergence divergence) histogram is printing in the red with an upward sloping trajectory which points to consolidation.
Inventories are Rising
The EIA reported that working gas in storage was 2,770 Bcf as of Friday, June 16, 2017. This represents a net increase of 61 Bcf from the previous week. Stocks were 324 Bcf less than last year at this time and 207 Bcf above the five-year average of 2,563 Bcf. At 2,770 Bcf, total working gas is within the five-year historical range.
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