Technical Natural Gas report for October 27, 2016
Natural gas prices were slammed early in the trading session dropping down to 2.627, but railed ahead of the close and recapturing support near the 200-day moving average at 2.743. Warmer than normal weather continues to be forecast to cover most of the United States over the next 8-14 days, which reduces heating demand for natural gas. Resistance is seen near former support at 2.80.
Momentum on natural gas remains negative as the MACD (moving average convergence divergence) recently generated a sell signal and is printing at the lowest level seen in the past 12 months. The index is printing in the red with a downward sloping trajectory which points to lower prices. The RSI (relative strength index) moved lower with price action reflecting accelerating negative momentum, while printing a reading of 32, which is on the lower end of the neutral range.
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