The recovery in crude oil prices is helping to pull along the prices of natural and gasoline. Gasoline prices are up by more than 10% and natural gas is also trending upwards. The big news for natural gas on the day was the EIA natural gas storage change, which showed a build-up of 109 billion cubic, which was less than what the markets had expected but was greater than last week’s storage of 70 billion cubic feet.
This greater than expected build-up in natural gas storage was enough to push down prices on the day. However, the prices of natural gas are still trending upwards and today’s report may be a little bump along the way in a week that has generally been good for crude oil and its derivatives.
Natural Gas Futures are trading at 2.066, which represents a 0.05 drop from the previous day’s levels. Price action is trading within the ascending channel, but price is being supported by the support level at 2.072 price level.
A breakdown of this support allows natural gas price to drop towards the confluence of the lower channel border and the 1.980 support level. Only a further breakdown of the channel’s lower border will breach this support and bring in 1.901 and 1.705 as potential support targets.
On the flip side, a bounce from the present support sends the asset towards the upper border of the channel. However, this move has to contend with the 2.200 price resistance, which is also reaffirmed by the 200-period SMA. A breakout beyond this point allows 2.325 to come into focus, with 2.485 presenting itself as a potential target if this was the case.