Natural Gas Price Analysis for July 18, 2017

Natural gas prices moved higher on Monday, rebounding above resistance after declining below on Friday. Prices are chopping around in a tight range, as warmer than normal weather is expected to cover most of the United States over the next 8-14 days according to the National Oceanic Atmospheric Administration.  Warmer than normal weather increases cooling demand which spills over into natural gas demand.

Momentum Remains Positive

Resistance is seen at the June highs at 3.11. Support is seen near the 10-day moving average at 2.95. Momentum remains positive as the MACD (moving average convergence divergence) index prints in the black, and the MACD histogram has a positive trajectory which points to higher prices for natural gas. Inventories remain above the 5-year average range which is putting downward pressure on natural gas prices.  The RSI (relative strength index) is forming a bull flag pattern which is a pause that refreshes higher.