Technical Natural Gas report for September 29, 2016

Natural gas prices moved lower on Wednesday ahead of Thursday report from the Energy Information Administration on inventories.  Prices sliced through support level which is now seen as resistance near 3.044.  Support is seen near the September lows at 2.80.  Tropical activity in the Atlantic is turning ominous and could project a move toward the Gulf of Mexico.  Tropical storm Matthew is boasting 60 miles an hour winds and projected to become a hurricane.

Momentum has turned negative as the MACD (moving average convergence divergence) index generated a sell signal.  This occurs as the spread (the 12-day moving average minus the 26-day moving average) crosses below the 9-day moving average of the spread.  The index moved from positive to negative territory confirming the sell signal.