Natural Gas Price Prediction – Prices surged as weekly natural gas storage rose 

Key Insights

• Natural gas prices sustained upward traction above $9.
• The weather is expected to be warmer than normal in the eastern part of the US.  
• Natural gas storage rose from the previous week.

On Thursday, natural gas prices sustained their rally for the fourth consecutive trading session.

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 EIA, Weekly Natural Gas Storage for the week of May 20th was 1,812 Bcf, which is a net increase of 80 from the previous week. Stocks were 327 Bcf less than they were last year and 327 less than the five-year average.

Total working natural gas is within the five-year range, hovering toward the lower end of it.

Technical Analysis

On Thursday, natural gas prices continued their momentum and remained above the $9 mark on more positive natural gas storage reports. Support is seen near the 10-day moving average of 8.43. Resistance is seen near the February 2nd highs.

Short-term momentum turns positive as the fast stochastic generated a crossover buy 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.