Natural gas prices whipsawed moving higher after tumbling on Friday. Natural gas demand is expected to decline as more than 6-million people are without power in Florida. If there is no electricity use, the demand tumbles and turbines that make electricity with natural gas will not need to be used. Prices rebounded after testing support near the monthly lows at 2.88. Resistance is seen near the 10-day moving average at 2.98.
Momentum Turned Negative
Momentum on natural gas has turned negative as the MACD (moving average convergence divergence) index recently generated a crossover sell signal. This occur as the spread (the 12-day moving average minus the 26-day moving average) crosses below the 9-day moving average of the spread. The index moved from positive to negative territory confirming the sell signal.
This article was originally posted on FX Empire
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