Technical Analysis Natural Gas for August 23, 2016

Natural gas prices moved higher on Monday, moving up to resistance near the 20-day moving average at 2.733.  Warmer than normal weather is now expected to cover most of the northeast for the next 8-14 days according to the Nation Oceanic Atmospheric Administration.  Support is seen near the August lows at 2.60.

Momentum has turned positive as the MACD (moving average convergence divergence) index generates a buy signal. This occurs as the spread (the 12-day moving average minus the 26-day moving average) crosses above the 9-day moving average of the spread. The index moved from negative to positive territory confirming the buy signal. The index is printing in the black with an upward sloping trajectory which points to higher prices.