Natural Gas Price Analysis for January 4, 2017

Natural gas prices moved lower on Wednesday taking a breather following its rapid rise, and despite stronger than expected manufacturing data reported on Wednesday by the ISM.  Prices generated an inside day, which is a lower high and a higher low which is a sign of indecision. Support is seen near the 10-day moving average at 2.29, while resistance is seen near a downward sloping trend line near 3.12.

U.S. Manufacturing Was Stronger than Expected

Solid U.S. national manufacturing gains beat expectations.  The Institute for Supply Management reported that its index of factory activity surged to a reading of 59.7 last month from 58.2 in November. The survey’s production sub-index rose 1.9 points to a reading of 65.8 and a gauge of new orders shot up 5.4 points to 69.4. Manufacturers also reported an increase in export orders.