Natural Gas Price Prediction – Prices Slide as Momentum Turns Negative

Natural gas prices eased moved lower, as mixed weather covers the U.S. over the next two weeks. The weather in the southeast is expected to be cooler than normal but the mid-West and the East coast are expected to see normal weather conditions.  There are no significant tropical disturbances in the Atlantic that are treating to become a tropical cyclone over the next 48-hours. The trajectory of the builds put inventories very close to the 5-year average for this time of year. U.S. Support of natural gas increased in the latest week.

Technical Analysis

Natural gas eased on Monday after slicing through support, which is now resistant near the 10-day moving average at 5.63 . Additional support near the 50-day moving average at 5.32. Short-term momentum has turned negative as the fast stochastic generated a crossover sell signal. Medium-term momentum is negative but consolidating. The MACD (moving average convergence divergence) histogram is printing in negative territory with a rising trajectory which points to consolidation.

Natural Gas Supply Rose

U.S. supply of natural gas this report week is up slightly as a result of natural gas production rising for the second week in a row. According to data from the EIAt, the average total supply of natural gas rose to 99.9 Bcf per day, which is an increase of 0.1% from the previous report week’s total. Nearly all of this increase was the result of dry natural gas production.