Natural gas prices eased slightly on Tuesday after rallying 11% on Monday. The weather pattern in the U.S. has changed, and it is expected to be cooler than normal throughout most of the mid-West for the next 6-10 days and then turn cooler covering more area and incorporating the North East. The mid-Atlantic is expected to be much colder than normal.
Natural gas prices eased after surging on Monday. Resistance is seen near the October highs at 6.69. Support is seen near the 10-day moving average at 5.60. Short-term momentum has turned positive as the fast stochastic generated a crossover buy signal. Prices have quickly moved up from oversold levels. Medium-term momentum is about to turn positive as the MACD (moving average convergence divergence) index is poised to generate a crossover buy signal. This scenario occurs as the MACD line (the 12-day moving average minus the 26-day moving average) crosses above the MACD signal line (the 9-day moving average of the MACD line).
U.S. Supplies Rise
U.S. supply of natural gas rises slightly this report week as a result of an increase in net imports from Canada. According to data from the EIA, the average total supply of natural gas rose by 0.3% compared with the previous report week from an average of 97.8 Bcf per day last report week to 98.1 Bcf/d this report week.
This article was originally posted on FX Empire