Natural gas prices broke out on Monday as Hurricane Maria was upgraded to a category-3 storm as it heads over the Caribbean. Production was already hampered following Hurricane Irma, and production has still not reached prior levels. Maria could move on sure in North Caroline which could reduce shipments up the coast to the North East.
Natural Gas Broke Out
Natural gas prices broke out above trend line resistance and closed at a fresh 3.5 month high at 3.11 which is now seen near short term support. Resistance is now seen near a downward sloping trend line at 3.45. Support is seen near the 10-day moving average at 3.01. 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 exponential moving average minus the 26-day exponential moving average) crosses above the 9-day exponential moving average of the spread.