Natural Gas Price Analysis for October 11, 2017

Natural gas prices rebounded more than 2% on Tuesday, rebounding back and making a higher high and a higher low. Prices have been under pressure as warmer than normal weather is cover most of the United States reducing cooling demand at the beginning of the heating season.  Inventories remain healthy near the 5-year average, which could climb if the weather remains warm.

Prices Are Consolidating

Resistance is seen near the 10-day moving average at 2.935, while support is seen near the weekly lows at 2.827. Momentum remains negative but its decelerating as the MACD (moving average convergence divergence) index prints in the red, but the trajectory of the MACD histogram is positive and trending higher which reflects consolidation. The relative strength index (RSI) rebounded slightly bouncing off support reflecting some positive momentum. The current reading of 41, is on the lower end of the neutral range which reflects some consolidation.