Natural Gas Technical Report for October 2, 2017

Natural gas prices were nearly unchanged on Friday, following a rig count report that showed that active rigs declined. According to Baker Hughes, the oil service giant, natural gas rigs dipped by one in the latest week. Prices remain range bond, chopping between support which is seen near the September lows at 2.96, and resistance which is seen near  3.21.

Momentum on Natural gas is Negative

Momentum on natural gas remains negative as the MACD (moving average convergence divergence) index recently generated a crossover sell signal. This occurs as the spread (the 12-day exponential moving average minus the 26-day exponential moving average) crosses below the 9-day exponential moving average of the spread. The MACD histogram is printing in the red with a downward sloping trajectory which points to lower prices for natural gas.