Natural Gas Price Prediction – Prices Fall as Momentum Turns Negative

Inventories are expected to decline by 145 Bcf according to Estimize
David Becker

Natural gas prices moved lower on Wednesday ahead of the Department of Energy’s inventory report scheduled for Thursday. Expectations are for inventories to decline by 145 Bcf according to survey provider Estimize. The weather is expected to remain warmer than normal for the next 6-10 days according to NOAA, but they moved back toward normal over the 8-14 day period. US LNG exports increased in the latest week. Expectations moving forward are that LNG exports to China will begin to increase.

Technical Analysis

Natural gas prices moved lower on Wednesday and are poised to test support near the January lows at 1.83. A break of this level would lead to a test of the 2016 lows at 1.61. Resistance to natural gas prices is seen near the 10-day moving average at 1.95. Short term momentum has turned negative as the fast stochastic generated a crossover sell signal. The current reading of 9, is below the oversold trigger level of 20 and could foreshadow a correction. Medium-term momentum has turned negative as the MACD (moving average convergence divergence) index generated 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 is printing in the red with a downward sloping trajectory which points to lower prices.

US LNG Exports Rose in the Latest Week

US liquefied natural gas exports increase week over week. Fifteen LNG vessels with a combined LNG-carrying capacity of 54 Bcf departed the United States between January 16 and January 22, 2020, according to shipping data compiled by the EIA. US LNG exports should begin to accelerate higher as the US-China phase one trade deal comes into effect.

Don't miss a thing!
Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Latest Articles

See All

Expand Your Knowledge

See All
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.