Natural Gas Price Analysis for September 18, 2017

Natural gas prices whipsawed and closed lower, dropping 1.27%, and holding just above support near the 10-day moving average at 3.002.  Resistance on natural gas prices is seen near the 3.106.  Prices action has been very choppy as inventories have declined below the 5-year moving average, which has been offset by mild weather. According to NOAA, much warmer than normal weather will be forecast to cover most of the East Coast, while cooler than normal will cover most of the West Coast.

Momentum is Neutral

Momentum on natural gas prices is neutral. The MACD (moving average convergence divergence) index is printing in the black, but the trajectory of the MACD histogram is flattening which reflects consolidation.  The RSI (relative strength index) which is a momentum oscillator that measures accelerating and decelerating momentum, moved lower reflecting decelerating positive momentum. The current reading of 54, is in the middle of the neutral range and reflects consolidation.