Natural Gas Price Prediction – Prices Rise and Form Inside Day

Natural gas prices rebounded slightly more than 1.6% forming an inside day following a sharp drop on Monday. Recall prices tumbled 11% on Monday, which followed a 25% decline in the price of natural gas last week. The weather in the mid-West is expected to be much, much warmer than normal near record highs, and the rest of the country is also expected to see warm weather conditions.

Technical Analysis

Natural gas prices formed an inside day on Tuesday following an 11% decline on Monday which is a sign of indecision. Momentum is negative as the MACD (moving average convergence divergence) histogram is printing in negative territory with a downward sloping trajectory which points to lower prices. Prices are oversold. The fast stochastic is printing a reading fo 3, well below the oversold trigger level of 20.

The Supply of Gas Increase

U.S. supply of natural gas increases week over week. According to data from the EIA, the average total supply of natural gas rose to 101.4 Bcf per day, an increase of 1.0% compared with the previous report week. Dry natural gas production grew by 0.9% (0.9 Bcf/d) to 96.0 Bcf per day compared with the previous report week’s average.