Natural gas prices moved lower for a second consecutive trading session, despite colder than normal weather which is expected to cover most of the east coast for the next 8-14 days according to the National Oceanic Atmospheric Administration. Colder weather generally equates to stronger heating demand which buoys natural gas prices.
Momentum has Turned Negative
Natural gas is poised to test target support near an upward sloping trend line that comes in near 2.84. Resistance is seen near the 10-day moving average at 2.996. Momentum has turned negative as the MACD (moving average convergence divergence) index recent generated a crossover sell signal. This occurs as the MACD line (the 12-day moving average minus the 26-day moving average) crosses below the MACD signal line (the 9-day moving average of the MACD line).
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.