Natural Gas Price Analysis for August 31, 2017

Natural gas prices whipsawed but moved lower on Wednesday ahead of Thursday inventory report. Stronger than expected U.S. GDP failed to buoy prices. Prices are hovering near the 10-day moving average at 2.96. Resistance is seen near the weekly highs at 3.0. Support is seen near the 2.87 level. Momentum is neutral as the MACD (moving average convergence divergence) histogram prints near the zero-index level with a flat trajectory which reflects consolidation.

U.S. GDP Increased More than Expected

U.S. Q2 GDP growth was revised up to 3.0% from the initial 2.6% pace, and compares to the 1.2% Q1 rate. It’s the first 3-handle on growth since Q1 2015. Personal consumption was bumped high to 3.3% from 2.8%. Business fixed investment was boosted to 3.6% from 2.2%, with nonresidential spending growth at 6.9% versus the prior 5.2% and residential at -6.5% from -6