Natural gas prices moved higher on Friday following a report from Baker Hughes that showed that natural gas rig count dropped by 2 in the latest week.
Natural gas prices moved higher on Friday following a report from Baker Hughes that showed that natural gas rig count dropped by 2 in the latest week. This comes on the heels of Thursday report that showed that stocks increased by only 11 Bcf compared to the 18 Bcf expected. Builds in natural gas stocks were more than 60 Bcf last year, which reflects a year over year declined in inventories.
Prices continued to drive higher testing resistance near 2.91. Support is seen near the recent breakout levels when was generated from a downward sloping trend line that connects the highs in June to the highs in July and comes in near 2.83. Momentum has turned positive as the MACD (moving average convergence divergence) index recently generated a sell signal. This occurs as the spread (the 12-day moving average minus the 26-day moving average) crosses above the 9-day moving average of the spread.
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.