Natural Gas Price Prediction – Prices Edge Higher Forming Inside Day
Natural gas prices rebounded slightly on Friday, forming an inside day and winding up the week down 21%. The weather is expected to be much warmer than normal throughout the entire United States for the next 2-weeks, which should put downward pressure on natural gas demand. Stronger than expected ISM manufacturing and robust ISM services shows that the commercials sector of the U.S. economy is still running hot.
On Friday, natural gas prices edged higher, bouncing and forming an inside day which is a sign of indecision. Target support is the July lows at 3.60. The 10-day moving average has crossed below the 50-day moving average, which means a short-term downtrend is in place. Short-term momentum has turned positive as the fast stochastic generated a crossover buy signal. Prices are oversold. The fast stochastic is printing a reading of 12, below the oversold trigger level of 20. Medium-term momentum is reversed and turned negative as the MACD (moving average convergence divergence) is about to generate a crossover sell signal.
Commercial Demand Should Remain Buoyed
The ISM Services followed the better than expected ISM Manufacturing and hit an all-time high for the series at 69.1 in November from 66.7 in October, beating the 65.0 consensus forecast. The index marks an all-time high survey, signals that the U.S. services sector registered a broad-based expansion in November.