Technical Analysis Natural Gas for November 19, 2015

Natural gas prices moved lower on Wednesday ahead of Thursday Energy Information Administration’s inventory report scheduled to be released at 10:30 AM ET. Ahead of the inventory number traders kept an eye on the weather as cold weather continued to be forecast to be spreading across the west and mid-west. Warmer than normal weather is expected to blanket the Northeast over the next 8-14 days according to the Nation Oceanic Atmospheric Administration.

Prices tested horizontal trend line resistance early in the trading session but were unable to pierce the 2.40 region and fell back below the 20-day moving average which as former support at 2.34.  Prices still made a higher high and a higher low which generally reflects an uptrend. Momentum on natural gas prices remains positive as the MACD (moving average convergence divergence) index is printing in the black with an upward sloping trajectory which points to higher prices.