EAI Natural Gas Storage Change - Small Higher print Spike Down

Natural Gas is still under pressure, at nearly decade lows. I have spoken about the reasons for this in previous blog posts but basically it has made trading this news release a bit trickier. However this is mostly for a negative deviation or Draw which normally would have a bullish reaction spike higher, but with the sell off in Natural Gas any spike up in it is just an opportunity to sell into the down trend.

Today was the reverse, the figure came out high and higher storage means higher supply and with the low demand due to a warm winter, the Natural Gas Future Contract NQ spiked down.

Natural Gas can spike quite well on this release, in fact I have seen deviations of just +/-2 move the market nicely. So although something closer to +/-7 is safer this +5 did work out very well.

Here is the data:

EIA Natural Gas Storage Change
Estimates -> Median: -85 Average: -84 Low: -92 High: -56
Actual: -80.00 Prior: -82 No Revision

Here is the 15 second chart of the NQ Natural Gas Future Contract with volume at the bottom.