Natural Gas Price Analysis for August 29, 2017

Natural gas prices whipsawed but closed higher, as Hurricane Harvey generated trepidation about demand for natural gas.  Refiners in the Gulf of Mexico are large consumers of natural gas along with chemical plants in the same region that make plastics. These refiners needed to shut down in the wake of the heavy rains in Houston that have dropped nearly 30 inches of rain in some areas, evacuating the region.

Momentum is Flat Reflecting Consolidation

Prices are hovering near the 10-day moving average at 2.92. Support is seen near an upward sloping trend line at 2.77. Resistance on natural gas is seen near a downward sloping trend line at 2.95. Momentum is neutral as the MACD (moving average convergence divergence) histogram prints in the black with a flat trajectory which reflects consolidation.