Warm weather forecast continues to drive prices higher
On Tuesday, natural gas prices moved higher after rising sharply on Monday. According to the National Oceanic Atmospheric Administration, the weather is expected to be warmer than normal during the next 6-10 days and the next 8-14 days throughout most of the United States.
Prices rise as the weather is warmer and cooling demand increases. According to the LNG export tracker, LNG exports increased to 13.29 Bcf up from 12.99 Bcf. There are no tropical cyclones expected to be in the Atlantic Ocean during the next 48-hours.
On Tuesday, natural gas prices edged higher. Resistance is seen near the May highs at 8.99. Support is seen near the 20-day moving average of 7.99.
Short-term momentum turned positive as the fast stochastic generated a crossover buy signal. Prices are overbought as the fast stochastic is print a reading of 91, above the overbought trigger level of 80.
Medium-term momentum turned positive. The MACD (moving average convergence divergence) histogram prints in neutral territory with a rising trajectory, meaning upward trade action. The MACD line recently generated a crossover buy signal. This scenario occurs as the MACD line (the 12-day moving average minus the 26-day moving average) crosses above the MACD signal line.
David Becker focuses his attention on various consulting and portfolio management activities at Fortuity LLC, where he currently provides oversight for a multimillion-dollar portfolio consisting of commodities, debt, equities, real estate, and more.