Technical Analysis Natural Gas for 8/5/15

Natural gas prices made their largest one-day gains in nearly three weeks on Tuesday as weather forecasts show a heat wave settling in the south.  Prices moved higher gaining slightly more than 2%, which appears to have put prices squarely back into a 2-month range.  According to NOAA, temperatures across the south will be warmer than normal over the next 8-14 days.

Prices bounced at the 2.73 level and appear to want to test the other side of the range at 2.90.  Momentum has slowed to a halt with the MACD (moving average convergence divergence) index printing near the zero level.  The RSI is printing in the middle of the neutral range and the Bollinger band width (which measures historical volatility), is printing near the lowest levels seen in the past 6-months.