Natural Gas Technical Report for December 7, 2016

Natural gas prices moved lower on Tuesday after initially pushing through resistance near the October highs at 3.65.  Prices were buoyed by a colder than normal forecast reported by the National Oceanic Atmospheric Administration for the next 8-14 days.  Support on natural gas prices are seen near the 10-day moving average at 3.367.  A break of resistance near 3.65, would lead to a test of the November 2014 highs at 4.55.

Momentum remains positive as the MACD (moving average convergence divergence) index prints in the black with an upward sloping trajectory which points to higher prices.  The RSI (relative strength index) moved higher with price action reflecting accelerating positive momentum, although the current print of 71, is above the overbought trigger level of 70 and could foreshadow a correction.

Natural Gas Fundamental Forecast

Natural Gas Technical Analysis