Natural Gas Price Prediction – Prices Rise as Tropical Storm Zeta BrewsThe weather is expected to moderate across the US
Natural gas prices moved higher on Tuesday rising 1.4% as tropical storm Zeta makes its way into the Gulf of Mexico. The movement of the storm is expected to reduce production in the Gulf of Mexico by approximately 20%. The weather is expected to be moderate and then warmer than normal throughout most of the US which will reduced heating demand. Stronger than expected Durable Goods Orders is likely to buoy manufacturing helping to generate more demand for natural gas.
Natural gas prices rose on Tuesday and are poised to test higher levels. Target resistance is seen near the 3.60 region. Support is seen near the 10-day moving average at 2.90. The 10-day moving average recently crossed above the 50-day moving average which means that a medium-term uptrend is now in place. Medium-term momentum is positive as the MACD (moving average convergence divergence) histogram prints in the black with an upward sloping trajectory which points to higher prices.
The path of the storm is directed right at several congested infrastructure regions. If the storm stalls in the area and reduced the volume of production, prices could rise significantly.