Natural Gas Price Analysis for November 7, 2017

Natural gas prices whipsawed higher climbing more than 5% on Monday as colder than normal weather is now forecast to cover most of the United States for the next 8-14 days according to the latest forecast by the National Oceanic Atmospheric Administration.  Prices surged and are poised to test target resistance near the October highs at 3.20. Support on natural gas is seen near the 10-day moving average at 3.

Momentum has Turned Positive

Momentum has turned positive as the MACD (moving average convergence divergence) index generated a crossover buy signal. This occurs as the spread (the 12-day moving average minus the 26-day moving average) crosses above the 9-day moving average of the spread. The index moved from negative to positive territory confirming the buy signal