Natural Gas Stays in Bullish Territory, But for How Long?Posted 08/18/2017 10:48AM CT |
Today the trend in Natural Gas is neutral to slightly up. Last week’s bull has sustained some technical damage, but still continues. October’s pivot is at 2.940 with resistance at 2.990 and 3.030. Support is at 2.91 and below at 2.850. Momentum studies are neutral and going sideways. RSI and MACD show no bias in either direction. A close below 2.830 would be sufficient to change the trend to neutral to slightly bearish. Above 2.990 may signal a run to 3.100 and above.
Thursday’s storage number showed an above slightly above average injection of 53 bcf. Industry estimates were lower at 47 bcf. Storage numbers are still above the above the 5 yr average, but just barely. Weather forecasts are for normal temperatures decreasing the demand for cooling. We are in the midst of hurricane season. It should be active according to NOAA. There are a number of tropical depression forming of the coast of Africa that have the potential to become named storms in coming weeks. This may give some support to the market, and even encourage some short covering boosting prices.
Oct ’17 Natural Gas Daily Chart