Natural Gas Price Prediction – Prices surged as on weaker production growth
- Natural gas prices rallied above $9.
- The weather is expected to be warmer than normal in the eastern part of the US.
- Lower inventories underpinned higher prices.
On Wednesday, natural gas prices reversed their uptrend after four consecutive trading sessions of gains.
According to the National Oceanic Atmospheric Administration, the weather is expected to be warmer than normal during the next 6-10 days and the next 8-14 days throughout the eastern part of the United States. Prices rise as the weather is warmer and cooling demand increases.
According to the LNG export tracker, LNG exports surged even higher on Wednesday to 13.39 after easing yesterday. However, the US supply of natural gas has continued to decline. This situation has caused prices to rise. Working natural gas in storage hovers near the five-year minimum level.
On Wednesday, natural gas prices surged above $9 before consolidating near the $8.9 level as weaker inventories are pushing up prices. Support is seen near the 10-day moving average of 8.29.
Resistance is seen near the May 9th highs of 8.996. Short-term momentum turned negative as the fast stochastic generated a crossover sell signal.
Medium-term momentum turned positive as the MACD had a crossover buy signal. The MACD (moving average convergence divergence) histogram prints in positive territory with a rising trajectory, meaning upward trade action.