Natural Gas Price Analysis for July 13, 2017

Natural gas prices gave back some of Tuesday gains ahead of Thursday report from the Department of Energy on natural gas inventories.  Warmer than normal weather is forecast to cover most of the United States for the next 8-14 days, which should increase cooling demand which should spill over into natural gas demand.

Momentum has Turned Positive

Prices dipped down to support near the 10-day moving average at 2.97.  Resistance is seen near the June highs at 3.11. A close above this level would lead to a test of target resistance near the April lows at 3.25. Momentum has turned positive as the MACD (moving average convergence divergence) index recently generated a crossover buy signal. This occurs as the spread (the 12-day exponential moving average minus the 26-day exponential moving average) crosses above the 9-day exponential moving average of the spread. The index moved from negative to positive territory confirming the buy signal.