Natural Gas Technical Report for May 1, 2017

Natural gas prices moved higher on Friday, as colder than normal weather is expected to cover most of the east coast over the next 8-14 days according to the most recent forecast from NOAA.  Colder weather during the spring adds additional heating demand which could help buoy natural gas.  Thursday’s slightly larger than expected build in natural gas inventories, has weighed on prices.  The change in the contract has help generated a weekly outside week, which is a reversal pattern which now points to higher prices.

A Head and Shoulder Continues to Form

On a daily basis, natural gas continues to form the right should of a head and shoulder pattern.  The neckline is seen near the 2.75 level.  Support on natural gas is seen near the 10-day moving average at 3.23. Resistance on natural gas is seen near a downward sloping trend line that connects the highs in January to the highs in April and comes in near 3,38.