Natural Gas Price Analysis for May 25, 2017

Natural gas prices were nearly unchanged after testing support levels near an upward sloping trend line near 3.17.  Colder than normal weather is expected to cover most of the mid-west and eastern seaboard which could reduce natural gas demand and put downward pressure on prices.  A break of the 3.17 level would lead to a test of the March 17 lows at 3.01.  Resistance on natural gas prices is seen near the 10-day moving average at 3.27. A break of that level would lead to a test of a downward sloping trend line that comes in near 3.43.

Momentum is Neutral

Momentum on natural gas prices are neutral as the MACD (moving average convergence divergence) index prints near the zero index level, while the MACD histogram has a flat trajectory which reflects consolidation.  The RSI (relative strength index) is chopping around printing a reading of 47, which is in the middle of the neutral range and reflects consolidation.