Natural Gas Price Analysis for December 28, 2017

Natural gas prices moved higher as colder than normal weather covered most of the mid-west and east coast with temperatures dropping into the single digits in some areas.  This boosted heating demand, which spills over into natural gas demand.  The 8-14 day forecast shows that the weather will be more moderate with slightly colder than normal weather cover most of the United States.

Momentum Has Turned Positive

Prices climbed approximately 3%, pushing back above the 10-day moving average which is seen as short term support near 2.67. Resistance is seen near the weekly highs at 2.78.  Momentum has turned positive as the MACD (moving average convergence divergence) index generated a crossover buy signal. This occurs as the MACD line (the 12-day moving average minus the 26-day moving average) crosses above the MACD signal line (the 9-day moving average of the MACD line.