Natural Gas Price Prediction – Prices Consolidate Ahead of Inventory Report

Natural gas prices moved sideways ahead of Thursday’s inventory report from the Department of Energy. After tumbling prices consolidate and then begin to rebound.  This is a pause that refreshes lower. The weather pattern shows cold weather in their planes and the West Coast and warmer than normal weather throughout most of the mi-West and South and East Coast. According to survey provider Estimize, inventories are expected to decline in 69 Bcf. LNG exports from the United States in UK and Europe rose over the past week.

Technical Analysis

Natural gas prices formed a bull flag pattern that is a pause that refreshes lower. Resistance is seen near the 10-day moving average at 3.84. Support is seen near the December lows at 3.65. Momentum is consolidating as the MACD (moving average convergence divergence) histogram is printing in negative territory with a rising trajectory which points to consolidation. Prices are oversold. The fast stochastic is printing a reading of 10, well below the oversold trigger level of 20. Short-term momentum is positive as the fast stochastic generated a crossover buy signal.

LNG Exports Rose

U.S. LNG exports increased this week from last week. Twenty-six LNG vessels with a combined LNG-carrying capacity of 95 Bcf departed the United States between December 2 and December 8, 2021, according to shipping data provided by the Energy Information Administration.