Natural Gas Coming Off Six Week LowPosted 07/03/2018 9:11AM CT |
Natural gas is coming off a six-week low, bouncing off the 100-day moving average at 2.855 with a close below that level prompting further liquidation. Natural gas was unable to hold the key 3.000 level despite largely widespread heat last week indicating that weather is not the only moving factor with demand continuing to buoy prices. The above average weather in the East Coast and Midwest is expected to temper into the beginning of next week which could allow inventories an opportunity to build. Inventories remain 20% below the five-year average. The market has fallen to near oversold levels with the next downside target at 2.80. Near-term resistance comes in at the 50-day moving average at 2.897.
Natural Gas Aug ’18 Daily Chart