Natural gas has been on a recent uptrend with support garnered from forecasts of above average temperatures in the Southwest up along the East Coast for the first week of October. The market remains concerned that the U.S. storage deficit compared to the five-year average will extend through the injection season. Early weekly estimates stand at 66 bcf versus the five-year average of an 81 bcf increase. Total inventories are at 2,722 bcf as of September 14th, which is 20% below last year’s total. Moving forward, keep an eye on the March/April spread which is utilized as an indicator of anticipated stockpile tightness during the upcoming cold season. Momentum is trending higher but is at overbought levels with resistance seen at 3.062 and near term support seen around 3.02.
Natural Gas Nov ’18 Daily Chart