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Natural Gas Price Prediction – Prices Rise 13.6% for the Week as Hurricane Ida Arrives

By:
David Becker
Published: Aug 27, 2021, 18:48 UTC

Hurricane Ida is expected to hit New Orleans

Natural Gas Price Prediction – Prices Rise 13.6% for the Week as Hurricane Ida Arrives

Natural gas prices continued to surge higher on Friday as Hurricane Ida formed in the Gulf. The storm quickly moved from a tropical depression to a tropical storm and is expected to hit the Gulf of Louisiana on Sunday. The storm could easily be a category 3 hurricane by the time it makes landfall.  According to NOAA, there is another storm behind Ida that is still in the Atlantic that has an 80% chance of becoming a tropical cyclone in the next 48-hours. The weather is expected to be colder than normal over the next 2-weeks which should increase cooling demand at the end of the summer in the Northern Hemisphere.

Technical Analysis

Natural gas prices broke out and continued to rally for a second consecutive trading session up a robust 13.6% for the week. Support is seen near the break out level at 4.20. Resistance is seen near the 2018 highs at 4.85. Short-term momentum has turned positive as the fast stochastic generated a crossover buy signal. Medium-term momentum has turned positive as the MACD (moving average convergence divergence) index generated a crossover buy signal. This occurs as the MACD line (the 12-day moving average minus the 26-day moving average) crosses above the MACD signal line (the 9-day moving average of the MACD line).

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.

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