Natural Gas Price Prediction – Prices Ease on Warm Weather Forecast
Natural gas prices eased ahead of the weekend, as warm weather is expected to cover most of the United States over the next two weeks. There are no significant tropical disturbances in the Atlantic that are treating to become a tropical cyclone over the next 48-hours. Inventories rose in line with expectations this week, but price action looks like it has formed a top, and is choppying around waiting for an impetus. The trajectory of the builds put inventories very close to the 5-year average for this time of year.
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Technical Analysis
Natural gas eased on Friday and pushed through support, which is now resistant near the 10-day moving average at 5.68 . Additional support near the 50-day moving average at 5.30. Short-term momentum has turned negative as the fast stochastic generated a crossover sell signal. Medium-term momentum is negative but consolidating. The MACD (moving average convergence divergence) histogram is printing in negative territory with a rising trajectory which points to consolidation.
Gas Consumption Rose
U.S. natural gas consumption increases significantly week over week, led primarily by an increase in the residential/commercial sector. Total U.S. natural gas demand rose by 5.7% week over week, according to data from the EIA.. The largest increase in demand was in the residential and commercial sector, which rose 31.5% as cooler temperatures prevailed in several areas of the country ahead of the winter heating season.