Natural Gas Price Prediction – Prices Rise Climbing more than 8% for the Week
Natural gas prices moved higher on Tuesday rising for a second consecutive trading session. The weather outlook should not alter the trajectory. Prices are expected to be cooler than normal throughout most of the United States’ west coast, and warmer than normal across most of the mid-west and east coast for the next 2-weeks. The supply moved lower due to lower imports from Canada in the latest week.
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Technical analysis
Natural gas prices moved higher on Tuesday for a second consecutive trading day. Prices rallied 2.3% and are up more than 8% for the week. It appears that prices have run into resistance seen near the 50-day moving average at 2.67. Support is seen near the 10-day moving average at 2.62. Short-term momentum has turned positive as the fast stochastic generated a crossover buy signal. Medium-term momentum has also turned positive as the MACD (moving average convergence divergence) index generated a crossover buy signal. This scenario occurs as the MACD line (the 12-day moving average minus the 26-day moving average) crosses above the MACD signal line (the 9-day moving average of the MACD line.
Supply Was Down Last Week
Supply is down because of lower imports from Canada according to the EIA. The average total supply of natural gas fell by 0.4% compared with the previous report week. Dry natural gas production grew by 0.1% compared with the last week report. Average net imports from Canada decreased by 6.1% from last week amid temperatures that were much warmer than normal in northeastern markets.