Natural Gas Price Prediction – Prices Remain Buoyed as the Weather is Expected to Turn Colder than Normal

Natural gas prices whipsawed tumbling down to 2.50, but rebounding 3.5% to close down 1.3% for the session. Colder than normal weather has made its way down the middle of the United States likely buoying heating demand earlier than normal. There are a total of 3-storms in the Atlantic. The first is moving up the coast of the United States with more than a 90% chance of becoming a tropical cyclone in the next 48 hours. A second is moving its way into the Caribian which has a 70% chance of becoming a tropical cyclone. This is the storm to watch as it could head toward the Gulf of Mexico just like Laura and Marco before it. The third is just coming off the coast of Africa and has less than a 2% chance of becoming a tropical cyclone in the next 48-hours.

Technical analysis

Natural gas prices rebounded sharply and close down approximately 1% after testing lower levels on Monday. Support is seen near the 10-day moving average at 2.60. Below target, support is seen near the 2.50 level. Resistance is seen near the August highs at 2.74. Short term momentum is negative as the RSI pushed below the overbought trigger level and continues to slide lower. Medium-term momentum is turning negative as the MACD (moving average convergence divergence) index is poised to generate a crossover sell signal. The MACD histogram is printing in red with a declining trajectory which points to lower prices.