Natural Gas Price Prediction – Prices Drop to All-Time Lows Ahead of Inventory ReportExpectations are for a 12 Bcf draw
Natural gas prices tumbled on Tuesday declining nearly 5.5%, following Tuesday’s steep decline as prices hit a fresh all-time low of 1.555. This comes as warmer than normal weather is expected to cover most of the United States for the next 6-10 and 8-14 days according to the National Oceanic Atmospheric Administration. Additionally, the dollar moved higher hitting a fresh 3-year high on Wednesday surging which put downward pressure on the commodity complex. Since natural gas prices are quoted in dollars a stronger dollar makes commodities less valuable in other currencies. Petroleum prices were also under pressure as crude oil prices tumbled 29% to a fresh 18-year low. This comes ahead of Thursday inventory report which is expected to show a 12 Bcf decline according to survey provider Estimize.
Natural gas prices moved lower on Wednesday declining nearly 5.5% and falling for a Third consecutive trading day. Resistance is seen near the 10-day moving average seen near 1.79. Support is seen near the March lows at $1.55. Momentum has turned negative as the MACD (moving average convergence divergence) index is poised to generate a crossover sell signal. This occurs as the MACD line (the 12-day moving average minus the 26-day moving average) crosses below the MACD signal line (the 9-day moving average of the MACD line). The MACD histogram crossed below the zero index level which also signifies a crossover sell signal. Both the fast stochastic and the RSI are moving lower reflecting accelerating negative momentum.