Natural Gas Price Analysis for August 24, 2017

Natural gas prices moved lower on Wednesday, as cooler than normal weather continues to be forecast to cover most of the United States over the next 8-14 day which should reduce cooling demand at the tail end of the summer. This might be offset by a forecast of Tropical storm Harvey which is moving in the Gulf of Mexico and could hit some natural gas installations.

Momentum is Neutral

Prices closed down 0.37%, hitting resistance near the 10-day moving average at 2.94.  Support on natural gas prices are seen near last week’s lows at 2.86. Momentum is neutral as the RSI (relative strength index) which is a momentum oscillator that measures accelerating and decelerating momentum, is printing near the 50 handle which is in the middle of the neutral range and reflects consolidation. The MACD is also printing in the black with a declining trajectory which also reflects consolidation.