Natural Gas Price Analysis for September 6, 2017

Natural gas prices whipsawed on Tuesday, initially moving higher, but settled lower as it appeared that Hurricane Irma was headed toward Florida instead of the natural gas production areas in the Gulf of Mexico. Cooler than normal weather is forecast to cover most of the mid-west of the United States over the next 8-14 days reducing cooling demand.

Momentum is Neutral

Prices edged through former support now short-term resistance near the 10-day moving average at 2.98. Support on natural gas is seen near the August lows at 2.80. Momentum is neutral as the MACD (moving average convergence divergence) histogram prints near the zero-index level with a flat trajectory which reflects consolidation.  The RSI (relative strength index) which is a momentum oscillator is chopping around and printing a reading of 50, which is in the middle of the neutral range and reflects consolidation.