Natural Gas Price Prediction – Prices Slip on Warm Weather Forecast
Natural gas prices slipped and remain in a tight range just above support levels. The weather is expected to be cooler than normal across the East Coast of the United States and warmer than normal across the West Coast, but then turning milder over the next 8-14 days. The U.S. supply of natural gas is down week over week.
On Monday, natural gas prices rise, slipped and tested support near and upward sloping trend line near 4.75. Resistance is seen near the 10-day moving average at 4.95. The 10-day moving average has crossed below the 50-day moving average, which means a short-term downtrend is in place. Short-term momentum has turned negative as the fast stochastic generated a crossover sell signal. Medium-term momentum is negative as the MACD (moving average convergence divergence) histogram prints in negative territory with a downward sloping trajectory which points to lower prices.
Natural Gas Supplies Slide
U.S. supply of natural gas is down this report week as a result of decreasing dry natural gas production. According to the EIA, the average total supply of natural gas fell to 99.3 Bcf per day this report week, a 1.7% decrease from the previous report. Dry natural gas production decreased by 1.1% compared with the previous report week.