Natural gas is continuing further downside action, down 0.0360 or 1.2596% on the day, trading at 2.822. The weather outlook is signaling hot temperatures in the Southwest that could provide minimal support and protect against further selling. The key 2.800 level could provide a level of support, however, further downside to the March through May consolidation zone cannot be overlooked with the path of least resistance remaining down. The natural gas storage report from Friday showed an injection of 78 bcf, which is slightly above the average estimate of 76 bcf. However, natural gas storage remains 18.6% below the five-year average. Natural gas appears near oversold levels with resistance around 2.873 and near term support around 2.811.
Natural Gas Aug ’18 Daily Chart