Technical Analysis Natural Gas for November 18, 2015
Natural gas priced moved higher on Tuesday as forecasts released showed colder weather in the next two weeks, which could boost indoor-heating demand. According to the Nation Oceanic Atmospheric Administration, weather will be cooler than normal throughout most of the west and mid-west for the next 8-14 days. As the calendar moves toward December, the price of natural gas is susceptible to spikes if weather is colder than expected.
Prices dipped on Monday but rebounded on Tuesday above the 20-day moving average at 2.35. Resistance is seen near a horizontal trend line at 2.40. Support on the currency pair is seen near 2.28, and then the October lows at 2.20. Momentum is positive with the MACD (moving average convergence divergence) index printing in positive territory with an upward sloping trajectory. The RSI moved higher with price action reflecting accelerating positive momentum, while printing a reading of 44, which is in the middle of the neutral range.