Natural Gas Price Analysis for July 12, 2017

Natural gas prices surged higher on Tuesday rising 3.9%, as warmer than normal weather is expected to cover most of the United States for the next 8-14 days which should increase cooling demand driving up natural gas prices.  Inventories remain above the 5-year average, but a stretch of warm weather could change that dynamic.

Momentum has Turned Positive

Prices sliced through resistance which is now seen as support near the 10-day moving average at 2.975.  Resistance is seen near the June highs at 3.12.  Momentum has turned positive as the MACD (moving average convergence divergence) index generated a crossover buy signal. This occurs as the spread (the 12-day moving average minus the 26-day moving average) crosses above the 9-day moving average of the spread. The MACD histogram is printing in the black with an upward sloping trajectory which points to higher prices for natural gas.