Natural Gas Price Prediction – Prices Rise on Less than Expected Inventory Build
Natural gas prices moved slightly higher on Thursday following a less than expected build in natural gas stockpiles. There is one disturbance in the Gulf of Mexico. Tropical depression 16, is now swirling in the Gulf and is expected to turn eastward making landfall in Louisiana and then Florida. The more west the storm goes the more likely it is to disrupt some natural gas installations. The weather is expected to be cooler than normal over the next 8-14 days according to the National Oceanic Atmospheric Administration.
Trading Derivatives carries a high level of risk to your capital and you should only trade with money you can afford to lose. Trading Derivatives may not be suitable for all investors, so please ensure that you fully understand the risks involved, and seek independent advice if necessary. A Product Disclosure Statement (PDS) can be obtained either from this website or on request from our offices and should be considered before entering into a transaction with us. Raw Spread accounts offer spreads from 0.0 pips with a commission charge of USD $3.50 per 100k traded. Standard account offer spreads from 1 pips with no additional commission charges. Spreads on CFD indices start at 0.4 points. The information on this site is not directed at residents in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.
Natural gas prices edged higher on Thursday bouncing near support at the 10-day moving average at 2.28. Resistance is seen near the October highs at 2.38. Short term momentum is positive as the fast stochastic continues to move higher. Additionally, the current reading on the fast stochastic is 59, which is above the upper half of the neutral range. Medium-term momentum as turning and the MACD (moving average convergence divergence) is poised to generate 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).
Stockpiles Rose Less than Expected
The Energy Information Administration reported that natural gas in storage was 3,519 Bcf as of Friday, October 11, 2019. This represents a net increase of 104 Bcf from the previous week. Expectations according to Estimize was for a 132 Bcf draw. Stocks were 494 Bcf higher than last year at this time and 14 Bcf above the five-year average of 3,505 Bcf. At 3,519 Bcf, total working gas is within the five-year historical range.