Natural gas prices rebounded after attempting to push below trend line support, and surged nearly 1% into the close of the trading session. While support
Natural gas prices rebounded after attempting to push below trend line support, and surged nearly 1% into the close of the trading session. While support is flat demand appears to have dipped in the latest week with most of the losses coming in the electrical power space.
Natural gas price rebounded as prices tested trend line support and bounded. Support is seen near the upward sloping trend line that comes in near 2.76. Resistance is seen near the 20 and 50-day moving average at 2.84. With the 20-day moving average crossing below the 50-day moving average a medium term downtrend could be in place. Negative momentum is decelerating as the MACD (moving average convergence divergence) histogram is printing in the red with a flattening trajectory which points to consolidation. The relative strength index (RSI) which is a momentum oscillator that measures accelerating and decelerating momentum, is move higher forming a bottom, which reflects declining negative momentum. The current reading on the RSI is 42, which is on the lower end of the neutral range.
According to data from the EIA, the average total supply of natural gas remained the same as in the previous report week, averaging 87.9 Bcf per day. Dry natural gas production remained constant week over week. Average net imports from Canada decreased by 7% from last week.
Overall demand is down with decreases in the electric power, residential/commercial sectors. Total U.S. consumption of natural gas fell by 2% compared with the previous report week, according to data from the EIA. Natural gas consumed for power generation declined by 3% week over week with cooler temperatures across much of the Lower 48 states. In the residential and commercial sectors, consumption declined by 3%. Natural gas exports to Mexico increased 2%. Industrial sector consumption stayed constant, averaging 19.7 Bcf per day.
David Becker focuses his attention on various consulting and portfolio management activities at Fortuity LLC, where he currently provides oversight for a multimillion-dollar portfolio consisting of commodities, debt, equities, real estate, and more.