Technical Natural Gas report for October 24, 2016

Natural gas prices tumbled on Friday dropping for the 3^rd straight trading session but holding above support near the 50-day moving average at 3.01.  Prices are trading on the defensive as warmer than normal weather continues to be forecast to cover most of the mid-west and the east coast according to the Nation Oceanic Atmospheric Administration.

Momentum on natural gas prices has turned negative as the MACD (moving average convergence divergence) index recently generated a sell signal. This occurs as the spread (the 12-day moving average minus the 26-day moving average) crosses below the 9-day moving average of the spread. The index moved from positive to negative territory confirming the sell signal.