Natural Gas Price Prediction – Prices Rise Ahead of Inventory Report
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, but then turning milder over the next 8-14 days. Inventories are expected to decline by 9 Bcf according to survey provider Estimize.
On Monday, natural gas prices rise, slipped and tested support near and upward sloping trend line near 4.75. Resistance is seen near the 10-day moving average at 4.95. 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 negative as the fast stochastic generated a crossover sell 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. total natural gas consumption increases week over week, led primarily by the residential and commercial sector. Total U.S. consumption of natural gas rose by 3.0% compared with the previous report week, according to data from the EIA. The largest week-over-week increase was in the residential.