Natural Gas Price Prediction – Prices Rebound After Thursday’s Wipeout

Natural gas prices rebounded on Friday rising 2% after tumbling on Thursday. The bounce came after a lower low ahead of target support. The weather is expected to remain warmer than usual to normal over the next 2-weeks. There are no storms in the Atlantic or Caribbean that are expected to impact natural gas installations. Baker Hughes reported on Friday that the total number of active oil and gas rigs increased for the week by 3, with oil rigs increasing by 5 and gas rigs falling by 2. Total oil and gas rigs in the United States are now down by 476 compared to this time last year.

Technical analysis

Natural gas prices rebounded on Friday after making a lower low and testing support near the March lows at 2.52. Resistance is seen near the former breakdown level at 2.68. Prices have bounced from an oversold level as the RSI pushed up to the 31 reading from 28, which reflects accelerating positive momentum. Medium-term momentum remains negative as the MACD (moving average convergence divergence) histogram prints in negative territory with a flat trajectory which points to consolidation.

Natural Gas Generation Increases

Natural gas-fired generation has generally increased in most U.S. since 2015, according to data from the U.S. Energy Information Administration’s. Annual electricity generation from natural gas power plants in the United States increased by 31% in the Northeast region, by 20% in the Central region and 17% in the South region between 2015 and 2019.