Technical Natural Gas report for September 28, 2016

Natural gas prices were nearly unchanged and remained at elevated levels as trader’s attempt to estimate how the current weather scenario will affect prices.  The National Oceanic Atmospheric Administration continues to forecast warmer than normal weather throughout most of the United States, while also reporting colder than normal weather throughout most of the western portion of the United States. Support is seen near the 10-day moving average at 3.04, while resistance is seen near last week’s highs at 3.16.

Tropical weather is circling in the Atlantic with a cyclone likely to form and move toward the Gulf of Mexico. NOAA is forecasting that there is a 90% change of a cyclone forming with the currency tropical disturbance.  A hit in the Gulf is likely the only impetus to drive prices above resistance.