Technical Natural Gas Report for November 22, 2016

Natural gas prices surged higher climbing nearly 4% on Monday as colder than normal weather spread over most of the east coast of the United States increasing the demand for natural gas heating. The latest forecast from NOAA shows that cold weather will also spread across the west and mi-west which could add to heating demand.

Price gapped higher and are poised to test resistance near former support at 3 per mmbtu. Support is seen near the bottom of the gap at 2.85, and then the 10-day moving average at 2.73.  Momentum is positive as the MACD (moving average convergence divergence) index generated a buy 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. The index has crossed from negative to positive territory confirming the buy signal.

Natural Gas Fundamental Forecast

Natural Gas Technical Analysis Forecast