Natural Gas Price Analysis for August 10, 2017

Natural gas prices rebounded 2%, despite cooler than normal weather and ahead of Thursday inventory report from the Department of Energy. Tropical Storm Franklin is circling in the Gulf of Mexico, but it is unlikely to hit U.S. installations in Texas or Louisiana. Prices rebounded pushing up to support near the 10-day moving average at 2.94.  Support on natural gas is seen near the August lows at 2.75.

Momentum Has Turned Positive

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 moving average minus the 26-day moving average) crosses above the 9-day moving average of the spread. The index moved from negative to positive territory confirming the buy signal. The MACD histogram is printing in the black with an upward sloping trajectory which points to higher prices for natural gas.