Natural Gas Price Prediction – Prices Fall Failing at Resistance

Natural gas prices tested resistance and failed and continued to form a bear flag pattern. This is a pause that refreshes lower. The weather pattern shows warmer than normal weather on the East Coast and Normal weather throughout the mid-West for the next 6-10 and 8-14 days.

Technical Analysis

Natural gas prices formed a bull flag pattern that is a pause that refreshes lower. Momentum is negative as the MACD (moving average convergence divergence) histogram is printing in negative territory with a downward sloping trajectory which points to lower prices. Prices are oversold. The fast stochastic is printing a reading of 10, well below the oversold trigger level of 20. Short-term momentum is positive as the fast stochastic generated a crossover buy signal.

Inventories Ended November Less than the 5-Year Average

The Energy Information Administration forecasts U.S. natural gas inventories ended November 2021 at more than 3.5 trillion cubic feet 3% less than the five-year average for this time of year. Less natural gas was injected into storage this summer than the previous five-year average, largely due to more electricity consumption in June because of hot weather and increased exports.