Technical Natural Gas Report for December 12, 2016
Natural gas prices moved higher on Friday climbing slightly more than 1.1% and notching up a fresh 1-year high. Colder than normal weather is forecast to cover most of the United States for the next 6-14 days which should increase heating demand and increase the demand for natural gas.
Support is seen near the 10-day moving average at 3.525, while resistance is seen near the weekly highs at 3.777. Momentum remains positive as the MACD (moving average convergence divergence) index prints in the black with an upward sloping trajectory that points to higher prices. The RSI (relative strength index) moved higher with price action reflecting accelerating positive momentum, but the current print of 73, is above the overbought trigger level of could foreshadow a correction.