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.
