Technical Natural Gas report for October 26, 2016

Natural gas prices tumbled on Tuesday as prospects of demand erode given the warmer than normal weather is forecast to cover most of the United States over the next 8-14 days per the Nation Oceanic Atmospheric Administration.  Prices tumbled through support levels generated from an upward sloping trend line that connects the lows in May to the lows in September and comes in at 3.17.  Prices slid through the 50-day moving average, which his now seen as resistance.  Support is seen near the October lows at 3.10.

Momentum 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.

Natural Gas Fundamental Forecast