Natural gas prices went whipsawed and higher, taking out resistance after an outdoor day making and a smaller resistance than the expected draw in stockpiles. According to the National Oceanic Atmospheric Administration, the weather is expected to be warmer than normal in the United States for the next 6-10 and 8-14 days.
Inventory growth below expectation
According to the EIA, as of Friday, April 16, 2021, natural gas in storage was 1,883 Bcf. This represents a net increase of 38 BCF from the previous week. According to survey provider Estimate, the inventions had expectations for building 50 BCF. At this time the stock was 251 bcf lower than the previous year and 12 bcf higher than the five-year average of 1,871 ccf. At 1,883 BCF, the total working gas is within the five-year historical range.
Natural gas prices formed an outward day that went lower and higher before hitting a higher pass. This is generally considered a positive sign for price action. Prices support the eclipse resistance, which is now near the 50-day moving average at 204. Target resistance is seen near the March high at 219. The short-term momentum is positive because the fast stochastic produced a crossover buy signal. Prices have also risen as the sharp stochastic prints 90’s readings above the overbought trigger level of 80 which could push a correction forward.