Natural Gas Price Prediction – Prices Rise Ahead of Inventory Report

Natural gas prices moved higher on Tuesday as supplies fell slightly in the latest week. Despite warmer than expected weather throughout most of the U.S., prices edged higher. Natural gas inventories are expected to decline by 120 Bcf according to survey provider Estimize.

Technical Analysis

Natural gas prices rose Tuesday, testing resistance near the 50-day moving average at 2.82. Support is seen near an upward sloping trend line that comes in near 2.64. This coincides near the 10-day moving average. Medium-term momentum has turned positive as the MACD (moving average convergence divergence) index recently 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).

Supply Falls

According to data from the EIA, the average total supply of natural gas fell by 0.1% compared with the previous report week. Dry natural gas production grew by 0.5% compared with the previous report week. Average net imports from Canada decreased by 8.4% from last week, but imports from Canada reached the highest daily level—6.5 Bcf/d on December 16.