Technical Analysis Natural Gas for 8/17/15

Natural gas prices continue to chop around in a broader range despite news from the National Oceanic Atmospheric Administration that temperatures across most of the United States would be warmer than expected.  On Thursday the EIA reported that Natural gas stocks increased more than expected, which increased inventories slightly above the 5-year range.

Natural gas is stuck in a range that is capped by resistance near a downward sloping trend line that connects the highs in May to the highs in August and comes in at 2.85.  Support is generated by an upward sloping trend line that comes in near 2.75.  The recent consolidation in the market is reflected by an RSI that is printing at 48, which is in the middle of the neutral range.