“Stocks are -208 Bcf less that last year at this time.”, — write: www.fxempire.com
Natural gas prices have started to move higher as traders reacted to the report. The storage draw exceeded analyst estimates, which may provide additional support to natural gas markets. However, some traders used the report as an opportunity to take some profits off the table, pushing the prices lower.
The current demand for natural gas is low. However, weather forecasts indicate that demand could increase next week, which may also serve as a positive catalyst for natural gas prices.
From the technical point of view, natural gas managed to settle above the resistance at $3.20 – $3.25 and is trying to gain additional upside momentum. In case this attempt is successful, natural gas will head towards the next resistance, which is located in the $3.55 – $3.60 range. RSI is in the moderate territory, and there is plenty of room to gain momentum in case the right catalysts emerge.
For a look at all of today’s economic events, check out our economic calendar.