Natural gas prices moved lower on Friday, dropping through support near the 10-day moving average at 3.30, which is now seen as short term resistance.
Natural gas prices moved lower on Friday, dropping through support near the 10-day moving average at 3.30, which is now seen as short term resistance. Additional support is seen near the January lows at 3.10. Warmer than normal weather that is seen covering most of the north eastern U.S. is reducing the perceived need for heating demand. Momentum remains negative as the MACD (moving average convergence divergence) index prints in the red with a downward sloping trajectory which points to lower prices.
This comes despite a larger than expected draw in natural gas reported on Thursday. According to the EIA, working gas in storage was 2,917 Bcf as of Friday, January 13, 2017. This represents a net decline of 243 Bcf from the previous week compared to the 231 Bcf expected.
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.