Natural Gas Price Prediction – Prices Rebound Rising 3.5% for the Week
Natural gas prices moved higher rising 1.8% on Friday and up 3.5% for the week. The weather is expected to be warmer than normal during the next two weeks, according to NOAA. According to NOAA, there are no tropical cyclones expected to form in the Atlantic during the next 48-hours. U.S. natural gas consumption increased due to both the commercial and residential sectors.
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Technical Analysis
Natural gas prices moved higher rising on a weekly, but unable to take out the highs that were made in April. Prices face some headwinds and will need to take out resistance near 3.13. Support is seen near the 10-day moving average at 3.02. Short-term momentum whipsawed and moved higher as the fast stochastic generated a crossover buy signal. Medium-term momentum is flat as the MACD (moving average convergence divergence) histogram is printing near the zero-index level with a flat trajectory which points to consolidation.
Consumption Rises
According to the Energy Information Administration, U.S. natural gas consumption increases driven by the residential and commercial sectors. Total U.S. consumption of natural gas rose by 0.7% compared with the previous report week, according to the EIA. Natural gas consumed for power generation declined by 8.0% this week after a 15.4% increase last week. Industrial sector consumption increased by 2.7% week over week. In the residential and commercial sectors, consumption increased by 24.0%.