Natural Gas Price Analysis for August 14, 2017

Natural gas prices initially moved lower on Friday, but rebounded during the PM trading session, and were nearly unchanged on the day.  Thursday’s smaller than expected increase in natural gas inventories buoyed the markets allowing natural gas to surge to hit the highs for August. Warmer than normal weather is now forecast to cover most of the United States for the next 8-14 days, which should increase cooling demand.

Momentum Has Turned Positive

Momentum on natural gas prices 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.