Natural Gas Price Prediction – Prices Sustain Upward Traction as Test Ten-Day Moving Average Amid Greater Open Interest

Key Insights

• Natural gas surged higher, rising 9% for the week.
• The weather is expected to be above normal throughout most of the U.S.
• Natural gas arrivals at LNG terminals continue to impress.

On Wednesday, natural gas prices extended their rebound 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 average during the next 8-14 days throughout most of the United States.

According to the EIA, US LNG exports decreased by four vessels from the previous week. Lower LNG exports can be due to seasonal maintenance at LNG terminals. 

Technical Analysis

On Wednesday, natural gas prices continued in an uptrend after breaking the $8.00 level on Tuesday. Prices might test target resistance near the $9.00 level, the 2022 peak. Short-term momentum has turned negative as the fast stochastic generated a crossover sell signal.

Medium-term momentum might turn positive. The MACD (moving average convergence divergence) histogram prints in negative territory with a rising trajectory, meaning range-bound trade action.