Natural Gas Price Analysis for January 11, 2018

Natural gas prices moved higher on Wednesday but was quickly met with resistance, as warmer than normal weather is forecast to cover most of the United States for the next 8-14 days according to the National Oceanic Atmospheric Administration.  Trader’s now await for the Energy Information Administration’s inventory report scheduled for Thursday.

Momentum is Neutral

Prices remain in a relatively tight range that is capped by a downward sloping trend line that comes in near 3.12. Support is seen near an upward sloping trend line that comes in near 2.52. Momentum is neutral as the MACD (moving average convergence divergence) prints near the zero index level with a flat trajectory which points to consolidation.  The RSI (relative strength index) is printing a reading of 52, which is in the middle of the neutral range and also reflects consolidation.