Natural Gas Price Prediction – Prices Break Out as Oil SinksPrices break higher as oil heads south
Natural gas prices surged higher on Monday, breaking out on robust volume, despite a dislocation in the crude oil markets that saw the May contract fall to most it has in history, down to -$37 per barrel. A negative close means that a producer will need to pay someone to remove the oil from their field. The weather is expected to remain colder than normal on the east coast for the next 2-weeks and warmer than normal on the west coast of the United State for the next 2-weeks.
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Natural gas prices surged higher rising nearly 12%, as the theme that many oil rigs will shut in, will reduce natural gas production is making the rounds. Prices broke through resistance near the 50-day moving average at 1.80 and sliced through downward sloping trend lines that come in near 1.88 and 1.92 which are seen as short term support. Resistance is seen near the March highs at 2.04. Short term momentum has turned positive as the fast stochastic surges higher after recently generating a crossover buy signal. Medium-term momentum has also turned positive as the MACD (moving average convergence divergence) histogram is printing in the red with an upward sloping trajectory which points to higher prices.