Natural Gas Price Analysis for August 21, 2017

Natural gas prices were lower on Friday, despite a report from Baker Hughes that showed that natural gas rigs dropped by 3.  Prices generated an inside day which is a sign of indecision where there is a lower high and a higher low. Support is seen near the 10-day moving average at 2.90. Resistance is seen near a downward sloping trend line that comes in near 2.95.  Momentum is neutral as the MACD prints in the black with a flat trajectory which reflects consolidation.

Rigs Declined in the Latest Week

Baker Hughes, the oil service giant, reported that the number of active natural gas rigs dropped by 3 while the number of oil rigs the United States fell this week by 5 rigs. Combined, the total oil and gas rig count in the US now stands at 946 rigs, up 455 rigs from the year prior. Oil rigs in the United States now number 763, 357 rigs above this time last year. Canada lost 6 oil rigs this week, with the number of gas rigs holding steady, for a total of 214 oil and gas rigs, 93 above the year ago levels.