Natural Gas Price Prediction for October 16, 2017

Natural gas prices moved higher for the second consecutive trading session, and is poised to test target resistance despite warmer than normal weather that is forecast to cover most of the United States for the next 8-14 days according to the National Oceanic Atmospheric Administration. Prices recaptured the 3 handle and are poised to test the 3.10 level which coincides with the August highs. Support is seen near the 10-day moving average at 2.91.

Momentum has Turned Positive

Momentum has turned positive as the MACD (moving average convergence divergence) index generated a crossover buy signal. This occurs as the MACD index (the 12-day moving average minus the 26-day moving average) crosses above the MACD signal line (the 12-day moving average of the MACD index. The MACD histogram is printing in the black with an upward sloping trajectory which points to higher prices.