Thursday was the fourth straight trading day in which natural gas prices advanced. The National Oceanic and Atmospheric Administration predicts that the weather will be warmer than average in the eastern United States for the next 6 to 10 days and 8 to 14 days. As the temperature rises and cooling demand grows, prices climb.
The Weekly Natural Gas Storage for the week of May 20 was 1,812 Bcf, an increase of 80 Bcf over the previous week, as reported by the EIA. Stocks were 327 Bcf below the previous year’s level and 327 below the five-year average. Total working natural gas is within the five-year range, hanging around the bottom of the range.
Technical Evaluation
On Thursday, natural gas prices maintained their upward trend and held above $9 due to more optimistic natural gas storage data. Near the 10-day moving average of 8.43 is viewed as support. Near the February 2nd highs, there is resistance.
As a result of the fast stochastic’s crossing buy signal, short-term momentum turns positive. As the MACD signaled a buy crossing, medium-term momentum became positive. The MACD (moving average convergence divergence) histogram is positive with a rising trend, indicating an upward trend in trading.
