Natural Gas Price Analysis for June 27, 2017

Natural gas prices moved higher on Monday following a forecast from the National Oceanic Atmospheric Administration which shows that warmer than normal weather is expected to cover most of the United States for the next 8-14 days, driving up natural gas demand.  Prices rebounded sharply climbing more than 3.4%.  The next level of target resistance on natural gas prices is seen near a downward sloping trend line that comes in near 3.07.  Additional resistance is seen near the June highs at 3.10.  Support on natural gas is seen near an upward sloping trend line that comes in near 2.86.

Momentum has Turned Positive

Momentum on natural gas prices has turned positive as the MACD (moving average convergence divergence) index 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.