Natural gas prices rebounded slightly on Friday, but pressure remains as the weather across most of the United States is expected to be warmer than normal over the next 8-14 days according to the Natural Oceanic Atmospheric Administration. Warm weather erodes heating demand and during the winter this is negative for natural gas demand. Additionally, the EIA reported this week a smaller than expected build in natural gas inventories which generated negative momentum.
Prices are poised to test support near the November lows at 2.825. Resistance is seen near the 10-day moving average at 3 per mmbtu. The RSI (relative strength index) is printing near 34, just above the oversold trigger level. Momentum remains negative as the MACD is printing in the red with a downward sloping trajectory which points to lower prices.
