Natural Gas Price Analysis for August 17, 2017

Natural gas prices moved lower on Wednesday dropping 1.5%, despite a forecast for warmer than normal weather which is expected to cover most of the United States over the next 8-14 days. Warmer than normal weather generally generates additional cooling demand which usually buoys natural gas prices. Traders will now await Thursday’s inventory report which is expected to show another build in stocks.

Momentum is Neutral

Prices moved lower finding support near the 10-day moving average at 2.88.  Resistance is seen near the August highs at 3.02.  Momentum is neutral as the MACD (moving average convergence divergence) histogram prints in the black but the trajectory has turned negative which is pointing to the potential for a crossover sell signal. The RSI (relative strength index) moved lower with price action reflecting accelerating negative momentum. The current reading of 47, is in the middle of the neutral range and reflect consolidation.