Natural Gas Price Analysis for July 7, 2017

Natural gas prices rebounded on Thursday but continues to form a bear flag pattern which is a pause that refreshes higher.  Cooler than normal weather is forecast to cover most of the east coast of the United States over the next 8-14 days according to the National Oceanic Atmospheric Administration. Traders await Friday natural gas inventory report, which is scheduled to be released one day late due to the Independence Day holiday.

Momentum Has Turned Negative

Natural gas recaptured trend line resistance which was former support near 2.88.  Additional resistance is seen near the 10-day moving average at 2.98.  Support is seen near the November lows at 2.81. Momentum has turned negative as the MACD (moving average convergence divergence) index recently generated a crossover sell signal. This occurs as the spread (the 12-day moving average minus the 26-day moving average) crosses below the 9-day moving average of the spread.