Natural Gas Price Analysis for August 8, 2017

Natural gas prices rebounded after breaking down on Friday, as cooler than normal weather is expected to cover most of the United States for the next 8-14 days. Cooler weather reduces the need for cooling demand, which is a major source of demand during the heart of the summer in the United States. Hurricane season has also started, and moved into the Gulf of Mexico will help buoy prices.

Natural Gas Momentum is Negative

Support on natural gas is seen near last week’s lows at 2.75, which coincides with the lower in natural gas seen in April of 2016. Resistance is seen near the 10-day moving average at 2.86. Momentum remains negative as the MACD (moving average convergence divergence) index generated a crossover sell signal. The MACD histogram is printing in the black with a downward sloping trajectory which points to lower prices for natural gas.