Natural Gas Price Prediction – Prices Rebound and Finish in the Black

Natural gas prices rebounded from session lows to finish trading up on the day. This comes as the weather is expected to be cooler than normal over the next 6-10 and 8-14 days according to the latest report from the National Oceanic Atmospheric Administration. Hedge funds added to long positions and reduced short positions in futures and options according to the latest report from the CFTC.

Technical Analysis

Natural gas prices rebounded from session lows to finish the day in the black. Support is seen near the 10-day moving average at 1.69. Resistance on natural gas is seen near the April highs at 1.92. Momentum is mixed. Short term momentum is negative but turning positive. Medium-term momentum is positive, but the trajectory of the MACD histogram is downward sloping which points to consolidation.

Hedge Funds Add to Long Positions

According to the CFTC in their latest commitment of traders report released for the date ending April 7, 2020, hedge funds added to their long position in futures and options. Managed money added 21K contracts to long position in futures and options while reducing short positions by 7.3K contracts. Open interest that is short futures and options contracts outnumbers open interest that is long by 51K contracts.