Natural gas prices whipsawed moving higher by 1%, as traders focused on Hurricane Irma which is threatening Florida but could move into the Gulf of Mexico. A movement west would potentially affect natural gas production facilities. Demand could also be affected if the electricity that is generated in Florida from natural gas turbines are unable to run. Traders await the inventory report from the Department of Energy which will be delayed due to the Labor Day Holiday.
Momentum is Neutral
Prices remained above support near the 10-day moving average at 2.98. Resistance is seen near the September highs at 3.09. Momentum is neutral as the MACD (moving average convergence divergence) histogram is printing in the black with a flat trajectory which points to consolidation. The relative strength index (RSI) which is a momentum oscillator that measures accelerating and decelerating momentum, is printing a reading of 52, which is in the middle of the neutral range and also reflects consolidation.