Natural Gas Price Prediction – Prices Rebound but Remain Rangebound

Natural gas prices rebounded but remain in a tight range just above support levels. The weather is expected to be cooler than normal across the East Coast of the United States and warmer than normal across the West Coast. U.S. LNG exports have increased week over week. Prices in Europe remain robust, keeping a bid under U.S. prices.

Technical Analysis

On Friday, natural gas prices rise, recapturing resistance is now supported near the 10-day moving average at 5.02. The 10-day moving average has crossed below the 50-day moving average, which means a short-term downtrend is in place. Short-term momentum has turned positive as the fast stochastic generated a crossover buy signal. Medium-term momentum is negative as the MACD (moving average convergence divergence) histogram prints in negative territory with a downward sloping trajectory which points to lower prices.

U.S. LNG Exports Rose

According to the EIA, U.S. LNG exports have increased this week from last week. Twenty-two LNG vessels with a combined LNG-carrying capacity of 79 Bcf departed the United States between November 11 and November 17, 2021. The destinations included both Europe as well as Asia.