Natural Gas Price Analysis for November 29, 2017

Natural gas prices moved higher rebounding more than 4.25%, as cold weather is sliding across the U.S. and is likely to bring an end to the warmer than normal weather that is cover most of the mid-west and east currently.  Natural gas demand is predicted on future heating demand, which declines when the weather is warmer than normal.

Prices Rebounded Sharply

Natural gas prices recaptured the $3 per mmbtu handle zipping up to 3.10 and closing the session near 3.05. Support is seen near the 10-day moving average at 3.016. Resistance is seen near the November highs at 3.23. The relative strength index (RSI) rebounded sharply, surging from oversold territory near 30, back into the middle of the neutral range near 50. Negative momentum is decelerating as the MACD histogram prints in the red with a upward sloping trajectory which points to consolidation.