Natural Gas Price Analysis for December 13, 2017

Natural gas prices tumbled through support levels breaking down and likely to see an acceleration toward support levels near a long term horizonal trend line near 2.52. Warmer than normal weather is forecast to cover most of the United States for the next 8-14 days according to the National Oceanic Atmospheric Administration. Warmer than normal weather will reduce heating demand and allow natural gas inventories to remain buoyed. Current inventory levels are hovering near the 5-year average.

Momentum on Natural Gas is Negative

The first level of resistance is the October lows near 2.72, and then an upward sloping trend line that was former support near 2.85.  Momentum is negative as the MACD (moving average convergence divergence) histogram prints near the zero index level with a flat trajectory which points to lower prices.