Technical Analysis Natural Gas for February 5, 2016

Natural gas prices moved lower and appears to be testing support levels near the December lows at 1.92. Resistance is seen near the 20-day moving average at 2.19. Momentum has turned negative as the MACD (moving average convergence divergence) index recently generated a sell signal. This occurs as the spread (the 12-day moving average minus the 26-day moving average) crosses below the 9-day moving average of the spread.

The EIA reported Thursday that working gas in storage was 2,934 Bcf as of Friday, January 29, 2016. This represents a net decline of 152 Bcf from the previous week. Stocks were 490 Bcf higher than last year at this time and 445 Bcf above the five-year average of 2,489 Bcf. At 2,934 Bcf, total working gas is within the five-year historical range.