Natural gas prices moved lower on Friday, despite colder than normal weather that is forecast to make its way across most of the mid-west of the United States for the next 8-14 days according to the National Oceanic Atmospheric Administration. Inventories dropped by more than expected this week, but the technicals remain damaging until prices stabilize.
Critical Support is Coming
Support is seen near a horizontal trend line that comes in near 2.52. If prices bound here, and the weather continues to show cold weather, natural gas could be poised for a rally. Resistance is seen near the 10-day moving average at 2.786. Momentum remains negative as the MACD (moving average convergence divergence) histogram prints in the red with a downward sloping trajectory which points to lower prices.
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.
