Natural Gas Price Analysis for August 3, 2017
Natural gas prices consolidated on Wednesday down slightly and forming a bear flag pattern. This is a pause that refreshes lower, after prices sliced through trend line support near an upward sloping trend line that comes in near 2.89, which coincides with the 10-day moving average. Support on natural gas is seen near the weekly lows at 2.76. Prices formed a pivot bottom, which is considered a reversal pattern. The low today is higher than the low the prior day which was lower than the day prior.
The Weather is Reducing Natural Gas Demand
Prices remain under pressure as the forecast for the next month is expected to be colder than normal throughout nearly all of the mid-section of the United States. The weather formed a ridge-trough pattern, where cold Canadian air moved own through the United States, dipping down to Texas. Colder than normal weather during the summer with reduce cooling demand.
This article was originally posted on FX Empire
