Natural Gas Price Analysis for July 19, 2017

Natural gas prices moved higher on Tuesday, climbing more than 2%, as warmer than normal weather is forecast to cover most of the United States for the next 8-14 days according to the National Oceanic Atmospheric Administration. Warmer than normal weather drives cooling demand which in turn increases natural gas demand.

Positive Momentum is Accelerating

Prices surged and are testing resistance near the June highs at 3.11. Support on natural gas prices are seen near the 10-day moving average at 2.96. Momentum is accelerating higher 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) broke out to fresh higher which reflects accelerating positive momentum. The current reading of 55, is in the middle of the neutral and well below the overbought trigger level of 70.