Natural gas prices tumbled on Wednesday, as cooler than normal weather is expected to cover most of the United States according to the National Oceanic Atmospheric Administration. Prices sliced through support near the June lows at 2.88, and are posed to test the November 2016 lows near 2.81. Resistance is seen near the 2.88 level and then the 10-day moving average at 2.98.
Momentum Has Turned Negative
Momentum on natural gas prices has turned negative as the MACD (moving average convergence divergence) index generated a crossover 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. The MACD histogram is printing in the red with a downward sloping trajectory which points to lower prices.
This article was originally posted on FX Empire