Natural Gas Price Prediction – Prices Fall But Hold Support

Natural gas prices dropped on Monday, declining 3.8%, following UK natural gas prices lower. The weather is expected to be warmer than normal throughout most of the United States for the next 8-14 days. There are two storms currently in the Atlantic near the Caribbean that have a small chance of each becoming a tropical cyclone in the next 48-hours according to the National Oceanic Atmospheric Administration.

Technical Analysis

Natural gas prices dropped sharply but seemed to have found some support near an upward sloping trend line that comes in near 5.29. Prices pushed through short-term support at the 10-day moving average which is now resistance near 5.75. Below that is the 50-day moving average at 4.69. 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 MACD histogram is printing in negative territory with a downward sloping trajectory which points to lower prices. Short-term momentum is also negative as the fast stochastic generated a sell signal.