Natural Gas Forecast, January 11
Natural gas has been trying to move higher during Friday’s trading session, with colder weather out, it is finally the moment to make its way into the northeast. The weather pattern is still warm for the southern portion of the United States, meaning that weather might not play a significant factor in demand use.
Something that could increase the amount of LNG would be an agreement with China, which will be exported and increase natural gas demand.
Natural gas prices were bounding above support, giving signals to go on an upward sloping trendline, which will be coming in near 2.90. Resistance on natural gas is seen near the 200-day moving average, seen near 3.13.
Closing above this level would lead to a short-squeeze and take prices back to the 3.36 level. Negative momentum is decelerating as the MACD ─ or moving average convergence divergence ─ histogram shows the trajectory positive, letting point to consolidate.
Fast stochastic have recently generated a crossover buy signal, showing the fast stochastic printing on a 13 reading, below the oversold trigger level of 20 which could foreshadow a correction.