Natural Gas Price Analysis for August 22, 2017

Natural gas prices moved higher on Monday, rebounding 2.25%, but unable to pierce through resistance near a downward sloping trend line that comes in near 2.98. Support on natural gas is seen near the 10-day moving average at 2.92. Last week the Department of Energy revised natural gas inventories for the period from June to early August which saw a decline in inventories of an additional 10 Bcf, which helped buoy prices.

Momentum is Positive

Momentum on natural gas prices remains positive as the MACD (moving average convergence divergence) histogram prints in the black with an upward sloping trajectory which points to higher natural gas prices. The relative strength index (RSI) moved higher with prices action reflecting accelerating positive momentum. The current print of 53, is in the middle of the neutral range and reflects consolidation.