Natural Gas Technical Report for January 17, 2017

Natural gas prices moved higher on the electronic market as colder than normal weather started to spread west to east in the United States. The east remains stuck in a weather pattern that is expected to see warmer than normal weather until the end of January.  Prices are headed toward target resistance near a gap at the 3.6 level.  Support on natural gas is seen near the 10-day moving average at 3.30.

Momentum is about to turn positive as the MACD (moving average convergence divergence) index is poised to generate a buy signal. This occurs as the spread (the 12-day moving average minus the 26-day moving average) crosses above the 9-day moving average of the spread. The index is printing in the black with an upward sloping trajectory that points to higher prices.