Natural Gas Price Prediction – Prices Rise and Continue to Form Topping Pattern

Natural gas prices rebounded on Tuesday and remain close to the bottom of a recent range. The weather will be mixed with warmer weather out west and cooler weather on the East Coast of the United States. Early estimates show that analysts expect another increase in inventories just ahead of the withdrawal season.

Technical Analysis

Natural gas prices traded sideways and is attempting to form a short-term bottom near trend line support at 4.73. Resistance is seen near the 10-day moving average at 5.23. The 10-day moving average crossed below the 50-day moving average which means a short-term downtrend is now in place. Short-term momentum has turned positive as the fast stochastic generated a crossover buy signal. Negative medium-term momentum is decelerating as the MACD (moving average convergence divergence) histogram is printing in negative territory with a rising trajectory which points to consolidation.

Natural Gas Supplies Rise

The EIA reports that U.S. supply of natural gas up slightly due to natural gas production rising for the second week in a row. The average total supply of natural gas rose to 99.9 Bcf per day, which is an increase of 0.1%. Nearly all of this increase resulted from dry natural gas production growing week over week by 0.5%.