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