Natural Gas Price Analysis for September 14, 2017

Natural gas prices moved higher on Wednesday testing resistance levels as warmer than normal temperatures are forecast to cover most of the eastern portion of the United States for the next 8-14 days according to the National Oceanic Atmospheric Administration. Warm weather generates cooling demand, which needs turbine activity driven by natural gas.

Momentum Has Turned Positive

Prices moved up to resistance generated by a downward sloping trend line that connects the highs in July to the highs in September and comes in near 3.08. Support is seen near the 10-day moving average at 2.99. Additional support is seen near an upward sloping trend line that comes in near 2.90. Momentum has turned positive as the MACD (moving average convergence divergence) index generated a crossover buy signal. This occurs as the spread (the 12-day moving average minus the 26-day moving average) crosses above the 9-day moving average of the spread.