Natural Gas Price Analysis for September 11, 2017

Natural gas prices tumbled on Friday, as traders are concerned about demand destruction due to the lack of electricity that might be used following the storm. If power is out in the south east, turbine use will decline, substantially which has led to the drop-in prices.  Additionally, Baker Hughes reported an increase in natural gas rigs by 4, which was larger than expected.

Momentum Has Turned Negative

Natural gas prices sliced through trend line support made from an upward sloping trend line that comes in near 2.91, which is now seen as short-term resistance. Support is seen near the 2.88 level and then the August lows at 2.80. Momentum has turned negative as the MACD (moving average convergence divergence) index generated crossover sell signal. This occurs as the spread (the 12-day moving average minus the 26-day moving average) crosses below the 9-day moving average of the spread.