Natural Gas Price Analysis for December 27, 2017

Natural gas prices whipsawed following a forecast from the National Oceanic Atmospheric Administration that showed that the weather in the United States will be mixed, with colder than normal weather cover most of the east coast, and warmer than normal weather cover most of the west coast.  Inventories declined more than expected last week ahead of the Holiday, but this news was not sufficient enough to lift prices.

Prices Have No Legs

Natural gas attempted to test resistance near an upward sloping trend line that was former support.  Prices declined back down to support near the 10-day moving average at 2.67. Momentum is neutral as the MACD (moving average convergence divergence) histogram prints in the red with a flat trajectory which reflects consolidation.