Technical Natural Gas report for August 30, 2016

Natural gas prices consolidated on Monday, as tropical weather continued to circulate in the Gulf of Mexico.  If tropical depression number nine turns into a hurricane it will likely generate upward pressure pressures on natural gas prices.  Warm weather is also forecast to cover most of the United States for the next 8-14 days according to the Nation Oceanic Atmospheric Administration.

Prices held support near former resistance which is a downward sloping trend line that connects the highs in June to the highs in July and comes in near the lows at 2.86.  Additional support is seen near the 10-day moving average at 2.77. Resistance on natural gas prices is seen near the August highs at 2.95.  Momentum is positive as the MACD (moving average convergence divergence) index recently generate a buy signal.  The index is printing in the black with an upward sloping trajectory which points to higher prices.