U.S. natural gas futures jumped 11 percent this week as hot weather stoked power-plant demand. The 14-day Relative Strength Index, a technical momentum indicator, is hovering on Friday at the highest levels since November 2014 after earlier rising to more than 70, a reading traders may take as a sell signal. “It’s implying the market is overbought and it could see a significant pullback any moment yet,” said Bob Yawger, director of the futures division at Mizuho Securities USA Inc. in New York.
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It’s Time to Sell U.S. Gas Based on This Technical Sign: Chart
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