Natural Gas Price Prediction – Prices Rise but Remain RangeboundThe weather is getting cooler
Natural gas prices continued to trading in a tight range. The weather is expected to be colder than normal over the next 6-10 days in the East Coast and the mid-Atlantic. This followed a warmer than expected period which increased cooling demand.
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Natural gas prices moved higher on Friday but remained rangebound. Target resistance is seen near the February highs at 3.06. Short-term resistance is seen near an upward sloping trend line that comes in near 2.97. Support is seen near the 10-day moving average at 2.92. The 10-day moving average crossed above the 50-day moving average, which means that a medium-term uptrend is now in place. Short-term momentum has turned positive fast stochastic generated a crossover buy signal. Medium-term momentum is positive but decelerating as the MACD (moving average convergence divergence) histogram prints in positive territory with a sliding trajectory which points to consolidation.
Warm Weather Drives Cooling Demand
Warm weather increases cooling demand. Total U.S. consumption of natural gas rose by 0.4% compared with the previous report week, according to the EIA. Natural gas consumed for power generation climbed by 4.1% week over week, as temperatures were warmer than normal for most of the country, increasing cooling demand. Industrial sector consumption decreased by 3.3% week over week. In the residential and commercial sectors, consumption declined slightly by 0.4%.