Natural Gas Price Analysis for May 10, 2017

Natural gas prices whipsawed higher closing up 1.58% on the session, and recapturing the 10-day moving average at 3.22.  Colder than normal weather in the north east has reduced cooling demand, which has in turn reduce natural gas demand.  Prices continue to form the right shoulder of a head and shoulder pattern, which could test the neck line at 2.75, and if broke head for target support near 2.35.

Momentum on Natural Gas is Neutral

Resistance is seen near a downward sloping trend line near 3.28, while support is seen near an upward sloping trend line at 3.175.  Momentum is neutral as the MACD (moving average convergence divergence) index prints in the black, but the MACD histogram has a negative trajectory which is pointing to consolidation. Traders now await Thursday’s report from the Department of Energy on inventories. Despite better than average demand, prices are consolidating.