Natural Gas: Will the Bullish Sentiment Continue?

Natural gas

On November 8, 2017, natural gas (UNG) (BOIL) December futures rose 0.7% and closed at $3.18 per MMBtu (million British thermal unit). The bullish weather forecast report could be helping natural gas prices rise.

Natural Gas: Will the Bullish Sentiment Continue?

Between November 1 and November 8, 2017, natural gas futures rose 9.7%. Over this period, the S&P 500 Index (SPY) and the Dow Jones Industrial Average Index (DIA) rose 0.6% and 0.5%, respectively. More than the rise in natural gas prices, a 4.6% rise in US crude oil (USO) futures could have helped these equity indexes.

In the next part, we’ll see how oil prices could pose a threat to the rise in natural gas. In Part 3, we’ll try to understand the impact of natural gas inventories on natural gas prices.

Moving averages

On November 8, 2017, natural gas active futures were 7.8%, 7.1%, 7.6%, and 5.2% above their 20-day, 50-day, 100-day, and 200-day moving averages, respectively. But the 50-day moving average was 1.7% below the 200-day moving average. So natural gas prices may not be out of the woods.