Natural Gas Price Analysis for November 23, 2017

Natural gas prices moved lower on Wednesday as warmer than normal weather is expected to cover most of the United States for the next 8-14 days according to the most recent forecast from the National Oceanic Atmospheric Administration.  Warmer weather will erode natural gas demand during the beginning drawing season, for natural gas inventories.

Momentum is Negative

Prices broke below support near the 3.0 level and is poised to test the November lows near 2.84. Resistance above 3, are seen near the 10-day moving average at 3.095. Momentum has turned negative as the MACD (moving average convergence divergence) index generated a crossover sell signal. This occurs as the MACD line (the 12-day moving average minus the 26-day moving average) crosses below the MACD signal line (the 9-day moving average of the MACD line).