Natural gas prices moved lower on Wednesday dropping 3.5% ahead of Thursday inventory report from the Department of Energy. Expectations are for a 77 Bcf build. This follows last week’s 120 Bcf build where analysts expected a more meager 85 Bcf build. The supply of natural gas rose in the latest week driven by an increase in imports from Canada.
Natural gas prices moved lower on Wednesday after failing to take out resistance near a downward sloping trend line near 1.74. Support on natural gas prices is seen near the 10-day moving average at 1.68. Medium-term momentum has turned positive as the MACD (moving average convergence divergence) index generated a crossover buy signal. This occurs as the MACD line (the 12-day moving average minus the 26-day moving average) crosses above the MACD signal line (the 9-day moving average of the MACD line) Short-term momentum has turned as the fast stochastic generated a crossover sell signal.
Supplies of Natural Gas Rise
Supply of natural gas in the US rose slightly, driven by an increase in imports from Canada. The average total supply of natural gas rose by 0.6% compared with the previous report week according to the EIA. Dry natural gas production decreased by 0.3% compared with the previous report week. The average net imports from Canada increased by 13.0% from last week, with increased flows at border crossing points in the Northeast to meet regional demand.
This article was originally posted on FX Empire
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