Natural Gas Price Prediction – Prices Drop but are Now Oversold

Natural gas prices tumbled on Tuesday but held support near an upward sloping trend line. The weather in the southeast is expected to be cooler than normal but the mid-West and the East coast are expected to see normal weather conditions.  There are no significant tropical disturbances in the Atlantic that are treating to become a tropical cyclone over the next 48-hours. U.S. LNG Exports increased week over week.

Technical Analysis

Natural gas prices tumbled on Tuesday, dropping to support near an upward sloping trend line near $5.0. Resistance is seen near the 50-day moving average at 5.33. Short-term momentum has turned negative as the fast stochastic generated a crossover sell signal. Prices are oversold as the fast stochastic is printing a reading of 3, below the oversold trigger level of 20. Medium-term momentum is negative. The MACD (moving average convergence divergence) histogram is printing in negative territory with a declining trajectory which points to lower prices.

LNG Exports Rise

U.S. LNG exports have increased this week. According to the Energy Information Administration, twenty-two LNG vessels with a combined LNG-carrying capacity of 80 Bcf departed the United States between October 28 and November 3, 2021. LNG exports continue to be buoyed by strong demand for natural gas in the United Kingdom and the European Union.