Natural Gas Price Analysis for July 5, 2017
Natural gas prices were nearly unchanged as the U.S. markets were closed for the Independence day holiday. On Monday, prices whipsawed and then moved lower ahead of the Independence Day holiday as cooler than normal weather is expected to cover most of the United States over the next 8-14 days according to the National Oceanic Atmospheric Administration. Cooler weather during the heart of the summer in the U.S. reduces nature gas demand. The move comes despite the smaller than expected increase in inventories reported last Thursday by the U.S. Department of Energy.
Positive momentum is Decelerating
Natural gas moved through support which is now seen as short-term resistance near the 10-day moving average near 3.00. Additional resistance is seen near June highs at 3.12. Support on natural gas is seen near the June lows at 2.88. Momentum is positive but decelerating as the MACD (moving average convergence divergence) index is printing in the black, but the trajectory of the MACD histogram is declining reflecting consolidation.
This article was originally posted on FX Empire