Natural gas prices moved higher on Tuesday forming a short term bottom, but the fundamentals remain intact, and inventories remain relatively higher. The weather is forecast to be colder and wetter than normal for most of the midsection of the United States over the next 8-14 days, which should reduce cooling demand and therefore reduce the demand for natural gas. Trader’s now await the Department of Energy’s inventory report scheduled for Thursday.
Momentum is Neutral Reflecting Consolidation.
Resistance is seen near the 10-day moving average at 2.84. Support is seen near the August lows at 2.75. Momentum is negative, but the negative momentum has been easing, as the MACD (moving average convergence divergence) histogram prints in the red, with an upward sloping trajectory which points to consolidation. The RSI (relative strength index) edged higher but remains in the middle of the neutral range which reflects consolidation.