Natural gas prices whipsawed but was unable to recapture resistance near the 200-day moving average at 3.255. Prices surged up to the January highs near 3.35, but failed to hold on to gains. Support is seen near the January lows at 3.12 per mmbtu. Warmer than normal weather is forecast to cover most of the United States over the next 8-14 days which should reduce natural gas demand and generate headwinds for prices. Traders await Thursday inventory report scheduled to be released by the Department of Energy.
Momentum remains negative as the MACD (moving average convergence divergence) index is printing in the red with a downward sloping trajectory which points to lower prices.