Natural Gas Price Prediction – Prices Attempt to Rise but are Met with Resistance
Natural gas attempted to move higher but was met with selling pressure and settled the session only slightly in the black. The weather is expected to be much colder than normal through all of the United States for the next two weeks. The ridge/ trough pattern could mean that the cold weather could remain in place for a considerable period. LNG exports continue to surge rising in November.
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Technical Analysis
Natural gas edged higher rising 0.6% on Monday. Short term support near a downward sloping trend line that comes in near 2.80. Resistance is seen near the February highs at 3.6. The trend is upward sloping. The 10-day moving average recently crossed above the 50-day moving average, which means that a short-term uptrend is now in place. Momentum is positive as the MACD (moving average convergence divergence) index recently generated a crossover buy signal. The MACD histogram is printing in positive territory with an upward sloping trajectory which points to higher prices.
LNG Exports Surge
According to the U.S. Energy Information Administration in November 2020, monthly U.S. exports of liquefied natural gas (LNG) exceeded natural gas exports by pipeline by nearly 1.2 billion cubic feet per day. Previously, this has happened only once since 1998