Natural Gas Technical Report for January 20, 2017

Natural gas prices rebounded following a larger than expected draw in natural gas inventories. Prices recaptured resistance which is now seen as support near the 10-day moving average at 3.34.  Resistance is seen near the January highs at 3.51. Momentum is flat with the RSI (relative strength index) printing a reading of 51, which is in the middle of the neutral range and reflects consolidation.

According to the EIA, reported that working gas in storage was 2,917 Bcf as of Friday, January 13, 2017. This represents a net decline of 243 Bcf from the previous week, and compares to expectations of a 230 Bcf decline. Stocks were 431 Bcf less than last year at this time and 77 Bcf below the five-year average of 2,994 Bcf. At 2,917 Bcf, total working gas is within the five-year historical range.