Natural Gas Price Prediction – Prices Rise Forming Bear Flag Pattern

Natural gas prices rebounded for a second consecutive trading session and form a bear flag pattern. This is a pause that refreshes lower. Recall prices fell 25% last week and 11% on Monday. 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 a bull flag pattern that is pause that refreshes lower. 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 of 7, well below the oversold trigger level of 20. Short-term momentum is positive as the fast stochastic generated a crossover buy signal.

Wellhead Capture Increased

According to the EIA, the rate of natural gas flaring, which is natural gas burned at the wellhead of the production site rather than being captured, declined in North Dakota. The average rate of non-capture was 7.5% this year through September. This decline in natural gas flaring resulted in producers capturing 92.5% of produced natural gas, which meets the state’s goal to capture 91% of the natural gas produced in the state.