Technical Analysis Natural Gas for July 27, 2016

Natural gas prices reversed the gains seen on Monday, moving lower back through support near the 20-day moving average which is now seen as resistance at 2.774.  support is seen near the July lows near 2.63. Warmer than normal weather which continues to be forecast to cover most of the United States over the next two weeks, should continue to buoy natural gas prices.  Warm weather increases electricity demand which in turn created strong demand for turbine use that is driven by natural gas.
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Momentum remains negative with the MACD (moving average convergence divergence) index prints in the red with a downward sloping trajectory which points to lower prices.  The RSI (relative strengh index) moved lower with price action reflecting accelerating negative momentum. The current reading of 50, is in the middle of the neutarl range and reflects consolidation.