Natural Gas Price Prediction – Prices Drop on Warm Weather Forecast
Natural gas broke down through support levels. The weather is expected much warmer than normal throughout the entire United States for the next 2-weeks which should put downward pressure on natural gas demand.
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Technical Analysis
On Tuesday, natural gas prices dropped falling through to support near the November lows at 4.65. Target support are the July lows at 3.60. Resistance is seen near the 10-day moving average at 4.96. The 10-day moving average has crossed below the 50-day moving average, which means a short-term downtrend is in place. Short-term momentum has turned negative as the fast stochastic generated a crossover sell signal. Medium-term momentum is reversed and turned negative as the MACD (moving average convergence divergence) is about to generate a crossover sell signal.
Natural Gas Consumption Rises
U.S. total natural gas consumption increases week over week, led primarily by the residential and commercial sector. Total U.S. consumption of natural gas rose by 3.0% compared with the previous report week, according to data from the EIA. The largest week-over-week increase was in the residential and commercial sector, where consumption increased by 11.8%.