Advertisement
Advertisement

Natural Gas Price Prediction – Prices Rebound and Eclipse Resistance

By:
David Becker
Published: Apr 8, 2019, 20:26 UTC

Prices rise on higher exports

Natural gas weekly chart, April 08, 2019

Natural gas prices moved higher on Monday rising 1.76% bouncing ahead of support. Prices have been in a downtrend as the withdrawal season changes over into the injection season. The weather is expected to be warmer than normal for most of the east coast and the mid-west reducing heating demand during the shoulder months.

Technical Analysis

Natural gas prices rebounded and settled through resistance levels which is now support near the 10-day moving average at 2.69. Resistance is seen near the March highs at 2.91. Short term momentum has turned positive as the fast stochastic recently generated a crossover buy signal. This occur when the fast-stochastic reading was 10, which was in oversold territory and captures the accelerating in short-term momentum. The fast-stochastic trajectory is upward sloping which reflects accelerating positive momentum. The current reading is 33, which is in the lower end of the neutral range, clearing the oversold trigger level of 20. Medium term negative momentum is decelerating. The MACD (moving average convergence divergence) histogram is printing in the red with a rising trajectory which points to consolidation.

LNG Exports are Increasing

US net natural gas exports in January 2019 totaled 2.3 billion cubic feet per day marking 12 consecutive months where U.S. natural gas exports exceeded U.S. imports according to the EIA. Preliminary data from the EIA indicates that this trend continued through February and March 2019. Exports from the United States via pipeline to both Canada and Mexico, as well as U.S. exports of liquefied natural gas were all at or near record highs as of January 2019. US LNG exports totaled 4.1 Bcf per day in January 2019, marking the third consecutive month where a new record high was reached, according to the Energy Information Administration. The volume of U.S. LNG exports rose steadily during 2018 as three new liquefaction units, called trains, totaling 1.9 Bcf per day capacity.

About the Author

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.

Did you find this article useful?

Advertisement