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Technical Analysis Natural Gas for July 25, 2016

By:
David Becker

Natural gas prices surged nearly 4% on Friday closing slightly off their lows ahead of a weekend where the weather is expected to be hotter than normal

Technical Analysis Natural Gas for July 25, 2016

Natural gas prices surged nearly 4% on Friday closing slightly off their lows ahead of a weekend where the weather is expected to be hotter than normal throughout most of the United States.  The weather on the east coast is expected to hit 100 degrees F in some places increasing substantially the amount of cooling demand necessary.
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Prices recapture former resistance which is now support near the 20-day moving average at 2.77.  Resistance is now seen near the 2.87 level and then the 2016 highs at 3.  The RSI (relative strength index) moved higher with price action reflecting accelerating positive momentum.  The MACD on the other hand is printing in the red, while the trajectory his turning upward reflecting consolidation.

About the Author

David Becker focuses his attention on various consulting and portfolio management activities at Fortuity LLC, where he currently provides oversight for a multimillion-dollar portfolio consisting of commodities, debt, equities, real estate, and more.

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