Technical Analysis Natural Gas for 8/10/15

Natural Gas prices continued to consolidate hovering near the 50-day moving average.  Weather over the next 8-14 days is expected to be milder than normal, keeping the prices range bound.  Thursday’s released of a smaller than normal build did little to keep prices buoyed.

Natural gas is stuck in a range but the range continues to get smaller, sapping volatility from the market.  The Bollinger band widths, which measure historical volatility are printing at the lowest reading seen in the year.  Resistance is seen near a downward sloping trend line at 2.91 while support is seen near 2.73.