Technical Natural Gas report for October 21, 2016

Natural gas prices moved lower on Thursday as warm weather in the north east is reducing heating demand. The EIA reported that inventories increased, but the number was in line with expectations. Support on natural gas prices is seen near the 50-day moving average at 3.006, while resistance is seen near the 10-day moving average at 3.236. Momentum has turned negative as the MACD (moving average convergence divergence) index 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.

According to the EIA. working gas in storage was 3,836 Bcfthis past week. This represents a net increase of 77 Bcf from the previous week. Stocks were 46 Bcf higher than last year at this time and 185 Bcf above the five-year average of 3,651 Bcf. At 3,836 Bcf, total working gas is above the five-year historical range.