Key Points

• EIA data indicates a drawdown in stocks
• Open interest on the decline
• Technical levels

The U.S. EIA data indicated that domestic supplies of natural gas declined by 91 billion cubic feet for the week ending December 4. The data deviated from markets expectations of a decline of 78 billion cubic feet for the week. Total stocks now stand at 3.848 trillion cubic feet, up 309 billion cubic feet from a year ago, and 260 billion cubic feet above the five-year average, according to the report. Proceeding the data release, Natural Gas futures climbed from weekly lows at $2.400 to trade at $2.600 during the U.S. Session.

Natural Gas 4H Chart

The Open interest in natural gas futures markets declined by around 7.4K contracts at the beginning of the week after a period of sustained builds. In the same period, Volume is advancing in the opposite direction, partially offsetting the previous drop and increased by almost 254.7K contracts.

Prices of the Natural Gas reclined from monthly highs above $3.45 to trade around the $2.40 mark per MMBtu before the release of EIA data. The negative performance was against the backdrop of shrinking open interest, opening the door to a rebound in the very near-term.

Trends

Moving Average	Simple	Exponential
60	2.926 SELL	2.784 SELL
100	2.734 SELL	2.680 SELL
200	2.274 BUY	2.493 BUY

Pivot Points (Daily)

Name	S3	S2	S1	Pivot	R1	R2	R3
US-Oil	43.40	44.46	45.62	46.68	47.84	48.90	50.06
Brent-Oil	46.86	47.86	49.06	50.06	51.26	52.26	53.46
Nat-Gas	2.211	2.296	2.424	2.509	2.637	2.722	2.850

Pivot Points (Weekly)

Name	S3	S2	S1	Pivot	R1	R2	R3
US-Oil	41.80	42.86	44.56	45.62	47.32	48.38	50.08
Brent-Oil	44.30	45.56	47.40	48.66	50.50	51.76	53.60
Nat-Gas	1.826	2.144	2.360	2.678	2.894	3.212	3.428