Natural Gas Price Analysis for March 21, 2017

Natural gas prices whipsawed on Monday rebounding sharply and breaking through a downward sloping trend line that was seen at resistance near 3.03.  The next level of target resistance on natural gas prices is seen near the March highs at 3.10.  A break of this level would likely lead to a test of the February highs near 3.25.  Colder than normal weather is moving down into the western portion of the United States which could increase cooling demand as the spring begins.  Inventories remain near the middle of the 5-year range for this time of year.  Support on natural gas prices is seen near the 10-day moving average at 2.96.

Momentum on Natural gas Prices is Beginning to Accelerate

Momentum remains positive, and is accelerating higher, as the MACD (moving average convergence divergence) index prints in the black with an upward sloping trajectory which points to higher prices for natural gas.