Technical Natural Gas Prediction for December 6, 2016

Natural gas prices surge higher climbing near 6% as colder than normal weather is forecast to cover most of the United States for both the 6-10 and 8-14 day forecasts according to the National Oceanic Atmospheric Administration.  Colder weather will generate stronger heating demand, which drives demand to natural gas.

Prices are poised to test resistance near the 3.66 level and a break of this level would lead to a test of the November 2014 level near 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 breaking through the 70 level which reflects accelerating positive momentum. The only caveat is that the current reading of 72, is above the overbought trigger level of 70 and could foreshadow a correction.

Natural Gas Fundamental Forecast

Natural Gas Technical Analysis