Natural gas prices moved higher on Thursday, rising 2%, following a
larger than expected draw in natural gas stockpiles. The Energy
Information released its inventory report, and despite warmer than
normal weather, reserves declined. According to the National Oceanic
Atmospheric Administration, the weather is expected to be warmer than
normal over the next 8-14 days.To get more news about
WikiFX, you can visit wikifx.com official website.
Technical Analysis
Natural gas prices rallied on Thursday but is still forming a bear
flag pattern which is a pause that eventually refreshes lower.
Resistance is seen near the top of a gap in mid-March at 2.58. Supoprt
is now seen near the 10-day moving average at 2.54. Additional support
is seen near the March lows at 2.42. Short-term momentum has turned
positive as the fast stochastic generated a crossover buy signal.
Medium-term negative momentum is decelerating as the MACD histogram is
printing in negative territory with a rising trajectory and poised to
generate a crossover buy signal
Inventories Fall More than Expected
Natural gas in storage was 1,746 Bcf as of Friday, March 19, 2021,
according to the EIA. This represents a net decrease of 36 Bcf from the
previous week. Expectations were for a 10 Bcf draw according to survey
provider Estimize. Stocks were 263 Bcf less than last year at this time
and 78 Bcf below the five-year average of 1,824 Bcf. At 1,746 Bcf, total
working gas is within the five-year historical range.
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