Technical Natural Gas Report for December 8, 2016

Natural gas prices whipsawed for a second straight trading session as prices attempted to break out and failed again.  Resistance is seen near the daily highs at 3.75, while support is now seen near the 10-day moving average at 3.42.  Colder than normal weather is expected to cover most of the United States over the next 8-14 days which should drive heating demand which will increase the use of natural gas.

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) is running into resistance unable to hold above the oversold trigger level of 70 which could foreshadow a correction.