Natural Gas Price Prediction – Prices Fail to Recapture Resistance Ahead of Inventory Report

Natural gas prices attempted to move higher but were unable to gain traction above support levels. Hurricane Iota, is now a post-tropical depression, and will not impact any natural gas installations. The weather is expected to move much warmer than normal over the next 6-10 and 8-14 days, according to NOAA which is weighing on natural gas prices.

Technical Analysis

Natural gas prices edged higher but were unable to recapture resistance near prior support near 2.83. Support is seen near the June lows at 2.63. The RSI has moved lower but stabilized after pushing through the oversold trigger level of 30. The fast stochastic generated a crossover buy signal in oversold territory. The current reading on the fast stochastic is 8, well below the oversold trigger level of 20 which could foreshadow a correction. Medium-term momentum is negative as the MACD (moving average convergence divergence) histogram is printing in the red with a downward sloping trajectory which points to lower prices.

Supply Declines

According to data from the EIA, the average total supply of natural gas fell by 2.4% compared with the previous report week. Dry natural gas production decreased by 0.7% compared with the previous report week. Average net imports from Canada decreased by 31.9% from last week.