Natural Gas Technical Report for January 25, 2017

Natural gas prices whipsawed attempting to move higher but was unable to hold up above support which was resistance near the 10-day moving average at 3.31.  Support on natural gas is seen near an upward sloping trend line near 3.20.  Warmer than normal weather is forecast to cover most of the United States over the next 8-14 days which should reduce heating demand and therefore reduce the demand for natural gas.

Momentum is neutral as the MACD (moving average convergence divergence) index prints in the red with a flat trajectory which reflects consolidation. The RSI (relative strength index) is printing a reading of 48, which is in the middle of the neutral range and also reflects consolidation.