Natural Gas Price Analysis for March 27, 2017

Natural gas prices moved higher on Friday, despite a larger than expected increase in active natural gas rigs reported by oil service Baker Hughes. Prices increased slightly more than 0.5%, but the weather is forecasted to be warmer than normal over the next 8-14 days according to the National Oceanic Atmospheric Administration. Heating days were less than normal during the winter which provided the backdrop for smaller draws in inventories

Momentum on Natural Gas Remains Positive

Prices were able to bounce at support near a downward sloping trend line near, $3 per mmbtu which coincides with the 10-day moving average.  Resistance is seen near the March highs at 3.1. A break of this level would lead to a test of the February highs at 3.21. Momentum remain positive as the MACD (moving average convergence) prints in the black with an upward sloping trajectory that points to higher prices for natural gas.