Natural Gas Price Analysis for May 23, 2017

Natural gas prices rebounded on Monday, climbing 2.18%, and recapturing resistance which is now support seen near the 10-day moving average at 2.285. Warmer than normal weather is now forecast to cover the entire eastern seaboard of the United States increasing cooling demand.  This could also drive up natural gas demand.

Momentum has Turned Positive

Prices are now poised to test a downward sloping trend line that comes in near 3.40, which is seen as resistance.  A close below the 10-day moving average, which is short term support would lead to a test of an upward sloping trend line that comes in near 3.17.  Momentum has turned positive as the MACD (moving average convergence divergence) index generated a crossover buy signal. The index moved from negative to positive territory confirming the buy signal. The MACD histogram has a positive trajectory pointing to higher prices.