By FXEmpire.com

Analysis and Recommendations:

Natural Gas is trading at 2.833 slightly down as investors wait for today’s EIA injection report. Markets have been trading down, on negative global sentiment and global growth warnings. The US unemployment data was pretty much on the money, and the big news will be Chinese GDP due on Friday.

Today’s inventory release reads:

Working gas in storage was 3,135 Bcf as of Friday, July 6, 2012, according to EIA estimates. This represents a net increase of 33 Bcf from the previous week. Stocks were 548 Bcf higher than last year at this time and 516 Bcf above the 5-year average of 2,619 Bcf. In the East Region, stocks were 229 Bcf above the 5-year average following net injections of 20 Bcf. Stocks in the Producing Region were 196 Bcf above the 5-year average of 923 Bcf after no net change in stock levels. Stocks in the West Region were 92 Bcf above the 5-year average after a net addition of 13 Bcf. At 3,135 Bcf, total working gas is above the 5-year historical range.

This should further weaken the price of Natural Gas. Natural Gas is now trading at 2.764 after the release tumbling 7 cents in just a few moments and it is expected to continue to decline, atleast to the line of support at 2.63

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Click here to read Natural Gas Technical Analysis.

Originally posted here