Natural Gas Price Prediction – Prices Form Doji Day a Sign of Indecision
Insight
Natural gas prices moved higher on Friday rising 1% and forming a doji day. The weather forecast shows warmer than normal weather across the West Coast and Cooler than normal weather across the East Coast during the next 6-10 days. This situation changes to show milder temperatures over the next 8-14 days. U.S. LNG exports declined week over week but should continue to rise due to high demand in Europe.
U.S. LNG exports decreased by one vessel this week from last week. Twenty-two LNG vessels with a combined LNG-carrying capacity of 82 Bcf departed the United States between March 10 and March 16, according to shipping data provided by the Energy Information Administration.
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Technical Analysis
Natural gas prices formed a doji day on Monday which is a sign of indecision. Support is seen near the 10-day moving average at 4.715. Resistance is seen near a downward sloping trend line that comes in near 5.15.
Short-term momentum has turned positive as the fast stochastic generated a crossover buy signal. Medium-term momentum has turned positive. The MACD (moving average convergence divergence) index is making a crossover buy signal. This scenario occurs when the MACD line (the 12-day moving average minus the 26-day moving average, crosses above the 9-day moving average of the MACD line.