Technical Analysis Natural Gas for May 31, 2016

Natural gas prices were unchanged on Monday as markets were closed for the Memorial day holiday.  The pre-market for Tuesday will open at 7pm EST.  Prices are poised to test the 20-day moving average at 2.22.  Support is seen near the May lows at 2.10.  The warmer than normal weather that is forecast by NOAA helped prices gain traction.  According to the agency, the east coast of the United States will experience warmer than normal weather over the next 8-14-days.  Warmer temperatures will induce greater demand for cooling generating.

Momentum on natural gas prices remain negative as the MACD (moving average convergence divergence) index prints in the red with a downward sloping trajectory which points to lower prices. The RSI (relative strength index) on the other hand, is printing a reading of 48, which is in the middle of the neutral range and reflects consolidation.