Natural Gas Price Analysis for March 15, 2017

Natural gas prices reversed the recent trend higher dropping 3.6%, as the snow Armageddon expected to hit the east coast of the United States was someone disappointing.  Additionally, warmer than normal weather is expected to cover most of the United States for the next 8-14 days.  Prices were unable to recapture resistance near the 200-day moving average at 3.085. Support on natural gas is seen near the 10-day moving average at 2.90.

A Head and Shoulder Pattern Could be Forming

Prices could be forming a head and shoulder pattern, with the neckline near the 2.60 level.  A break of this level would lead to a test of the February 2016 lows at 2.31. Momentum as reflected by the MACD (moving average convergence divergence) index is positive as the index is printing in the black with an upward sloping trajectory which points to higher prices.  Traders await Thursdays inventory report scheduled to be released by the Department of Energy.