Natural Gas Price Prediction – Prices Continue to Rally Ahead of Inventory Report

Natural gas prices moved higher again on Wednesday, ahead of Wednesday’s inventory report from the Department of Energy. Expectations are for a 110 BCF draw according to survey provider Estimize. The weather is expected to be warmer than usual for the next 6-10 and 8-14 days in the northern part of the United States and cooler than usual in the country’s southern region. LNG exports were flat week over week, according to the EIA.

Technical Analysis

Natural gas prices continued to trend higher, rising 0.75%, and poised to test resistance near the 50-day moving average at 2.82. Support is seen near the 10-day moving average at 2.56. Medium-term momentum has turned positive as the MACD (moving average convergence divergence) index recently generated a crossover buy signal. Prices are overbought. The fast stochastic is printing a reading of 89, above the overbought trigger level of 80, foreshadowing a correction.

LNG Exports Were Flat

U.S. LNG exports are flat week over week. Twenty-two LNG vessels with a combined LNG-carrying capacity of 78 Bcf departed the United States between December 10 and December 16, 2020, according to shipping data provided by the EIA.