Technical Natural Gas report for August 31, 2016

Natural gas prices whipsawed as traders continued to focus on weather TD number 9 would form a hurricane and remain in the Gulf of Mexico.  The current forecast by the Nation Oceanic Atmoshperic Administration was for the storm to head back toward Florida and avoid most of the Natural gas development installations.

Prices were unable to take out resistance near the August highs at 2.95.  Prices slip down and made a lower low and is poised to test support near the 20-day moving average at 2.75.  Momentum remains positive with the MACD (moving average convergence divergence) index printing in the black with an upward sloping trajectory which points to higher prices.  The RSI (relative strength index) on the other hand moved lower with price action reflecting accelerating negative momentum.