Natural gas Price Analysis for December 12, 2017
Natural gas prices moved higher on Monday, forming a bear flag pattern, with a dead cat bounce. Warmer than normal weather is expected to cover most of the United States for the next 8-14 days according to the National Oceanic Atmospheric Administration. Prices bounced off support levels generated from an upward sloping trend line that connects the lows in February to the lows in October and comes in near 2.76. Short term resistance is former support near an upward sloping trend line that comes in near 2.85. Additional resistance is seen near the 10-day moving average near 2.95.
Momentum Remains Negative
Momentum remains negative as the MACD (moving average convergence divergence) histogram prints in the red with a downward sloping trajectory which points to lower prices for natural gas. The RSI (relative strength index) has found support which points to decelerating negative momentum.
This article was originally posted on FX Empire
