Natural Gas Prices Continue to Rally on Cold Weather Forecast
On Tuesday, natural gas continued to rally, rising another 4% after starting the week up 5% and climbing 5% last week. According to a recent National Oceanic Atmospheric Administration report, Cool-weather is expected to cover most of the Mid-West and North East for the next 8-14 days. U.S. LNG exports rose in the latest week, helping buoy demand.
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Technical Analysis
On Tuesday, natural gas prices rallied, adding to Monday’s surge. Support is seen near the 200-day moving average at 4.02. Resistance is seen near the 50-day moving average at 4.40, which coincides with a downward sloping trend line. Short-term momentum is positive as the fast stochastic generated a crossover buy signal. Medium-term momentum is positive as the MACD (moving average convergence divergence) histogram is printing in positive territory with an upward sloping trajectory which points to higher prices.
U.S. LNG Export Rose
U.S. LNG exports increased by three vessels this week from last week. According to the Energy Information Administration, Twenty-four LNG vessels with a combined LNG-carrying capacity of 88 Bcf departed the United States between December 30, 2021, and January 5, 2022.