Natural Gas Price Prediction – Prices Rally but Close off the Highs

Natural gas prices continued to move higher on Tuesday but closed well off the session highs. Prices surged hitting the $3 per mmbtu level hitting stops and $2.90 which ran the price up. During the session prices eased. The weather is expected to remain much colder than normal for the next 6-10 days. It will become slightly more mild during the following 8-14 days. Supply rose during the past week due to higher exports from Canada.

Technical Analysis

Natural gas prices surged higher on Tuesday hitting $3 per mmbtu before easing into the session’s close. Prices hit a slew of stops at $2.90 and ran up 10 cent before declining 15 cents into the session’s close. Support is seen near the breakout level at 2.81. Resistance is seen near the daily highs at $3. Medium-term momentum is positive as the MACD (moving average convergence divergence) index generated a crossover buy signal. The RSI (relative strength index) continued to grind higher which also reflects accelerating positive momentum.

Supply rose Due to Canadian Exports

According to the EIA supply increased due to higher exports from Canada. The average total supply of natural gas rose by 0.8% compared with the previous report week. Dry natural gas production grew by 0.2% compared with the last week report. Average net imports from Canada increased by 8.4% from last week.