Natural Gas Price Analysis for September 27, 2017

Natural gas prices whipsawed moving higher and then lower unable to pierce through resistance. Inventories remain high into the end of the building season, inching above the average of the 5-year range of stockpiles. Warmer than normal weather continues to be forecast to cover most of the United States for the next 8-14 days. This should buoy prices.

Momentum on Natural gas is Negative

Resistance on natural gas is seen near the breakdown level which is a downward sloping trend line that comes in near 2.94.  Support is seen near the September lows at 2.89. Momentum is negative as the MACD (moving average convergence divergence) index recently generated a 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.  The MACD histogram is printing in the red with a downward sloping trajectory which points to lower prices.