Natural Gas Price Analysis for December 19, 2017

Natural gas prices rebounded on Monday, as colder than normal weather is forecast to cover most of the United States for the next 8-14 days according to the latest estimate from the Nation Oceanic Atmospheric Administration.  Well below normal temperatures will cover the upper mid-west over the New Year, and spread down potentially generating frost in Northern Texas.

Momentum is Neutral

Prices failed to recapture resistance near the 10-day moving average at 2.76, and a close above this level would lead to a test of the breakdown level near 2.85. Support on natural gas prices is seen near the February 2017 level at 2.52. Negative momentum is decelerating as the MACD (moving average convergence divergence) histogram prints in the red with a rising trajectory which points to consolidation.