Natural Gas Price Analysis for August 23, 2017

Natural gas prices attempted to break out on Tuesday but was unable to pierce through resistance near a downward sloping trend line which is seen as resistance near 2.98.  Prices pushed through that level early in the session, but sagged as cooler than expected weather is forecast to cover most of the mid-west of the United States for the next 8-14 days.  Cooler than expected weather, would reduce cooling demand from air conditioners, which would reduce turbine needs and spill over into natural gas demand. Support on natural gas prices is seen near the 10-day moving average at 2.937. Additional support is seen near the August lows at 2.79.

Momentum is Neutral

Momentum is neutral as the MACD (moving average convergence divergence) histogram prints in the black, with a trajectory that is flattening which points to consolidation. The RSI (relative strength index) is also moving sideways and printing a reading of 52, which is in the middle of the neutral range and reflects consolidation.