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Natural Gas Price Analysis for April 27, 2017

By:
David Becker
Published: Apr 26, 2017, 19:43 UTC

Natural gas prices rebounded sharply on Wednesday ahead of Thursday report from the Department of Energy on inventories. Weather appears to be the

Natural Gas Price Analysis for April 27, 2017

Natural gas prices rebounded sharply on Wednesday ahead of Thursday report from the Department of Energy on inventories. Weather appears to be the catalyst as the National Oceanic Atmospheric Administration is forecasting colder than normal weather across most of the United States which would generate stronger than usually cooling demand.

Prices Rebound but Down Trend is Intact

Prices rebounded to resistance near the 10-day moving average at 3.142, but was unable to eclipse that level. Support is seen near the April lows at 3.022.  A close above the 10-day moving average would lead to a test of a downward sloping trend line that comes in near 3.29.  Momentum remains negative, but the trajectory of the MACD is flattening as the histogram, edged higher reflecting decelerating negative momentum. The RSI (relative strength index0 is printing a reading of 50, which is in the middle of the neutral range and reflects 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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