Natural Gas Price Analysis for January 8, 2018

Natural gas prices declined for a second consecutive trading session, falling nearly 3%, following a forecast that shows that the weather will be warmer than normal throughout most of the United States over the next 8-14 days according to the National Oceanic Atmospheric Administration.  Most of the east and the west will be warmer than normal reducing the need for heating demand.

Prices Target Trend Line Support

Prices sliced through support which is seen as short-term resistance near the 10-day moving average at 2.825.  Additional resistance is seen near a downward sloping trend line that is seen near 3.12.  Support is seen near an upward sloping trend line that comes in near 2.55. Positive momentum has decelerated as the MACD (moving average convergence divergence) histogram is printing in the black with a downward sloping trajectory which points to consolidation.