Natural Gas Draw

December 22, 2016 8:49AM CST

February natural gas has been in a down trend until yesterday, when it was much higher because of expectations that the draw on today’s storage numbers could approach 200 bcf.  The actual draw was 209 bcf.   This was a classic “buy the rumor sell the fact” situation.  When the announcement was made on the storage numbers the price began to drop.  The draw was already factored into the price.  Anyone who bought yesterday was rewarded for their wager.  Warm weather in the forecast also kept the prices in check.

Resistance is seen near 3580 – 3620.  A close above 3650 might press prices to 3760 and beyond.  Support comes in at 3500 and beneath that 3440 - 3410.   A close beneath 3400 could send the market to new near-term lows. Light volume takes us to the sidelines awaiting the next signal.  Happy Holidays!

Natural Gas Chart

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