Natural Gas Price Prediction – Prices Rise Closing the Week up 6.2%The weather is expected to remain colder than normal
Natural gas prices moved higher closing up 1%, and settling higher by 6.2% for the week. The weather is expected to be cooler than normal for most of the mid-west for the next 6-days days and then moderate. In late January through mid-February, significant colder-than-normal temperatures in the Lower 48 states resulted in increased heating demand for natural gas in the United States.
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Natural gas prices moved higher on Friday. Resistance is seen near the 50-day moving average at 2.72. Support is seen near the 10-day moving average at 2.56. Medium-term momentum is positive as the MACD (moving average convergence divergence) index 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). Prices are overbought. The current reading on the fast stochastic is printing near 94, above the overbought trigger level of 80, foreshadowing a correction.
The weather was cold in January through February
In late January through mid-February, significant colder-than-normal temperatures in the Lower 48 states resulted in increased heating demand for natural gas in the United States, despite an otherwise warmer-than-normal winter. As a result, the winter had larger-than-average winter natural gas withdrawals. Before the cold snap, winter temperatures had been relatively mild, but a combination of increased heating demand, record liquefied natural gas and pipeline exports, and decreased natural gas production contributed to the withdrawal activity during February.