Technical Analysis Natural Gas for 8/7/15

Natural Gas prices whipsawed on Thursday but managed to stay in the same tight range following the inventory report released by the Department of Energy. The U.S. Energy Information Administration reported Thursday morning that U.S. natural gas stocks increased by 32 billion cubic feet for the week ending July 31. Analysts had expected a storage injection of 40 billion cubic feet. The five-year average for the week is an increase of around 53 billion cubic feet.

Prices remain in a tight range and the wedge that is forming is building energy and eventually with break.  Resistance is seen near a downward sloping trend line at 2.91, while support is produced by an upward sloping trend line at 2.73.  Volatility has collapsed with the Bollinger Band width printing at the lowest reading seen since October 2014.