MTECHTIPS;- Natural Gas Price Prediction – Natural Gas Prices Rise Toward Resistance

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MTECHTIPS;- Natural Gas Price Prediction – Natural Gas Prices Rise Toward Resistance

MTECHTIPS-Natural gas prices edged higher on Monday but ran into trend line resistance which should generate headwinds. Inventories have dropped below the 5-year average range and with prices still well below the 5-year average, there should be continued upside in natural gas levels. The weather is forecast to be warmer than normal over the next 8-14 days according to the National Oceanic Atmospheric Administration.  The current weather pattern should drive up cooling demand during the heart of the U.S. summer.Natural gas prices ran into resistance generated by a downward sloping trend line that connects the highs for 2018 to the highs in June and comes in near 2.86. Support is seen near the 10-day moving average at 2.80. Additional support is seen near an upward sloping trend line that comes in near 2.75. Momentum as reflected by the MACD (moving average convergence divergence) index is positive. The MACD index generated a crossover buy signal as the MACD line (the 12-day moving average minus the 26-day moving average) crosses above the MACD signal line (the 9-day moving average of the MACD line). As prices head toward resistance the fast stochastic is flashing an overbought signal. The stochastic is printing a reading of 95, well above the overbought trigger level of 80 which could foreshadow a correction in prices. The fast stochastic is also decelerating and could generate a crossover sell signal

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