The weather is expected to remain colder than normal over the next 8-14 days
On Monday, natural gas prices gapped higher, rising nearly 5% after climbing 5% last week. According to a recent report from the National Oceanic Atmospheric Administration, Cool-weather is expected to cover most of the Mid-West and North East for the next 8-14 days. Once the weather forecast remains cooler than normal, prices have finally recaptured key resistance and should remain buoyed.
On Monday, natural gas prices gapped higher and closed slightly below the open . Support is seen near the 200-day moving average at 4.02. Resistance is seen near the 50-day moving average at 3.84, which coincides with a downward sloping trend line. Short-term momentum is positive as the fast stochastic generated a crossover buy signal. Medium-term momentum is positive as the MACD (moving average convergence divergence) histogram is printing in positive territory with an upward sloping trajectory which points to higher prices.
U.S. consumption of natural gas substantially increased last week. U.S. residential and commercial sector consumption increased by 21.8% as the National Oceanic and Atmospheric Administration reported widespread, below-average temperatures across the central and western United States. As a result, total U.S. consumption of natural gas increased by 13.3% week over week.
David Becker focuses his attention on various consulting and portfolio management activities at Fortuity LLC, where he currently provides oversight for a multimillion-dollar portfolio consisting of commodities, debt, equities, real estate, and more.