Technical Natural Gas report for September 27, 2016

Natural gas prices continue to trade in a choppy pattern, rebounding on Monday to recapture the 3 handle along with former resistance now support at the 10-day moving average at 3.037.  Resistance is seen near the September highs at 3.166.  The weather pattern is conducive to above average use as weather is expected to be colder than normal in the north west and warmer than normal throughout the mid-west and the eastern portions of the United States.

Tropical activity in the Atlantic shows three depressions but only one that is expected to generate a cyclone. This disturbance is above South America and could head toward the Gulf of Mexico potentially disrupting production. The potential for disruption is the only activity that will likely be an impetus for higher prices.