Natural gas prices moved higher on Tuesday but were unable to recapture resistance. Warmer than normal weather is forecast to cover most of the United States according to the latest forecast by the National Oceanic Atmospheric Administration. Warm weather increases cooling demand which helps buoy natural gas prices.
Momentum Has Turned Positive
Resistance on natural gas is seen near a downward sloping trend line that connects the highs in June and comes in near 3.08. Support on natural gas is seen near the 10-day moving average at 2.98. Momentum has turned positive as the MACD (moving average convergence divergence) index generated a crossover buy signal. This occurs as the spread (the 12-day exponential moving average minus the 26-day exponential moving average) crosses above the 9-day exponential moving average of the spread. The MACD histogram is printing in the black with an upward sloping trajectory which points to higher prices.