Technical Analysis Natural Gas for 8/26/15

Natural Gas prices move higher on Tuesday as warmer than expected weather in most of the United States is likely to boost energy demand.  Commodity prices in general received a reprieve from the heavy selling seen over the past month.  Today’s surprise rate cut by the PBOC failed to really buoy natural gas prices.

Natural gas bounced off of trend line support seen near 2.64, and continue to move higher during the trading session generating a higher high for the day. The first level of resistance is seen near the 20-day moving average near 2.77.  The RSI moved higher along with price action reflecting accelerating positive momentum while printing at 44, which is in the middle of the neutral range.