Natural Gas Price Prediction – Prices Fall Through Support On Robust Inventory Build

Natural gas prices moved lower on Thursday. This comes after Thursday’s inventory report from the Department of Energy. According to the National Oceanic Atmospheric Administration, the weather is expected to be warmer than normal for most of the East Coast and Mid-Atlantic for the next 6-10 and 8-14 days.

Technical Analysis

Natural gas prices moved lower on Thursday and closed below support 10-day moving average which is now seen as resistance at 2.97. Additional resistance on the June contract is seen near the May highs at 3.15. Momentum is negative as the fast stochastic generated a crossover sell signal and moved from overbought levels to the middle of the neutral range. Medium-term momentum is turning negative as the MACD (moving average convergence divergence) index is poised to generate a crossover sell signal.

Naturla  gas in storage was 2,100 Bcf as of Friday, May 14, 2021, according to the EIA. This represents a net increase of 71 Bcf from the previous week. Expectations were for a 61 bcf draw according to survey provider Estimize. Stocks were 391 Bcf less than last year at this time and 87 Bcf below the five-year average of 2,187 Bcf. At 2,100 Bcf, total working gas is within the five-year historical range.