Technical Analysis Natural Gas for 8/3/15

Following Thursday’s outside day down, natural gas prices continued to move lower testing trend line support.  The cooler than expected weather forecast by NOAA over the next 8-14 days continues to keep downward pressure on prices.

Support the natural gas prices is seen near an upward sloping trend line that connects the lows in June to the lows in July and comes in at 2.70.  Short term resistance is seen near the 20-day moving average at 2.81, and additional resistance is seen near a downward sloping trend line that connects the highs in May to the highs in July and comes in at 2.91. Prices continue to consolidate which is reflected by the RSI which is printing a reading of 42, which is in the middle of the neutral range.