Natural gas price forecast – Price drop following inventory report

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Technical analysis

Natural gas prices fell on Thursday, down nearly 3%. Support is seen near the 10 day moving average at 2.28. Resistance is seen near August highs at 2.47. Short term momentum turned negative as the Fast Stochastic generated a cross sell signal. The current reading on the Fast Stochastic is 81, above the overbought trigger level of 80, which could portend a correction. Medium-term positive momentum slows as the MACD (Moving Average Convergence Divergence) histogram prints in the dark with a decreasing path that indicates consolidation.

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