On September 26, the U.S. Energy Information Administration (EIA) released its weekly natural gas storage report. The report showed that working gas inventories increased by 47 billion cubic feet from last week, below analysts' expectations of 52 billion cubic feet.

Currently, inventory levels are 15.9 Bcf above last year and 23.3 Bcf above the five-year average.

Natural gas prices did not react strongly to this report and it is worth noting that futures traders are shifting from the October 2024 contract to the November 2024 contract today. Taken as a whole, traders will be watching the potential impact of Hurricane Helene, which has caused some production shutdowns and could provide support for natural gas prices.

However, lower temperatures and power outages could put pressure on demand, so it remains to be seen if natural gas prices can gain additional upside momentum in the near term.

From a technical perspective, natural gas needs to stabilize above $2.90 to have a chance of gaining additional upside momentum in the near term. If natural gas prices break above $2.90, it will head towards resistance near $3.10. The Relative Strength Index (RSI) is in a moderate range and still has enough room to gain momentum if the right catalysts emerge.