Natural Gas Price Analysis for July 20, 2017

Natural gas prices whipsawed on Wednesday first taking out Tuesday highs and then reversing course and settling near the session lows. Prices were unable to break through resistance near the 3.11 level.  Prices continue to be buoyed by warmer than normal weather which is expected to cover most of the United States for the next 2-weeks.  Traders await Wednesday’s inventory report schedule to be released at 10:30 AM ET by the Department of Energy.

Prices are Poised to Break Higher

A close above resistance near 3.11 would lead to a test of the May lows at 3.30. Support is seen near the 10-day moving average at 2.98.  Momentum remains positive as the MACD (moving average convergence divergence) histogram prints in the black with an upward sloping trajectory which points to higher prices. The RSI (relative strength index) is edging higher, reflecting a consolidative tone.