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.
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).