Natural Gas Price Analysis for January 3, 2018

Natural gas prices continued to move higher on Tuesday, headed for resistance as colder than normal weather is forecast to cover most of the United States for the next 6-14 days according to the National Oceanic Atmospheric Administration.  The weather currently is severely cold, which is driving natural gas demand.  Currently stocks are below the 5-year average, while prices are below the 5-year average at 3.25.

Momentum is Positive

Momentum has recently turned positive as the MACD (moving average convergence divergence) index recently 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). The RSI has surged higher which reflects positive momentum, but the current reading is still well below the overbought trigger level, which shows there is more upside.