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Natural Gas Price Prediction – Prices Slip but Close up Nearly 4% for the Week

David Becker

Natural gas prices whipsawed for a second consecutive trading session initially testing lower levels and then rebounding to close the session -0.6%. For the week, prices rallied nearly 4% but well of the highs of the week. This follows Thursday’s outside day reversal pattern is a negative sign. The weather is expected to be cooler than normal in the east and southeast for the next 6-10 day and then moderate to normal to above normal during the next 8-14 days. Supply that was available in the US was driven by imports from Canada

 

Technical Analysis

 

Natural gas prices whipsawed but rebounded from session lows after hitting support near the 10-day moving average at 1.87. Resistance is seen near the February highs at 2.03. Short term momentum is negative as the fast stochastic generated a crossover sell signal in overbought territory. The current reading on the fast stochastic is 57, coming from an overbought reading which reflects accelerating negative momentum.

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Supply Increased Due to Imports

Supply rose as net imports from Canada rise. According to data from the EIA, the average total supply of natural gas rose by 1% compared with the previous report week. Dry natural gas production remained constant week over week. The average net imports from Canada increased by 7% from last week with higher imports into New England because of winter temperatures.

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