Natural gas prices broke out following Thursday’s larger than expected draw in natural gas inventories and despite warmer than normal weather expected to cover most of the United States for the next 8-14 days. Prices pushed through trend line resistance that was created by connecting the highs in December 2016 to the highs in November 2017 that comes in near 3.13. Support is seen near former resistance and then the 10-day moving average at 2.96.
Momentum is Positive
Momentum no natural gas is positive as the MACD (moving average convergence divergence) histogram prints in the black with an upward sloping trajectory which points to higher prices. The RSI (relative strength index) moved higher with price action pushing to 2-month highs, which reflects accelerating positive momentum. The current reading of 64, is on the upper end of the neutral range.
This article was originally posted on FX Empire
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