Natural Gas Price Prediction – Prices Trade Sideways, Ahead of Inventory Report

Inventories are expected to rise by 66 Bcf
David Becker
Natural Gas

 

Natural gas prices edge higher but traded sideways ahead of Thursday’s inventory report from the Energy Information Administration. Expectations are for stockpiles to rise by 66 Bcf compared to last weeks actual result of 81 Bcf. Warmer than normal weather has been covering most of the east coast putting upward pressure on New York and Mid-Atlantic prices. There are no current storms in the Atlantic that have a chance of becoming a tropical cyclone. Natural gas feedstocks to US LNG plants set a record last week.

Technical Analysis

Natural gas prices traded sideways and held above support term support which is an upward sloping moving average near 2.34. Resistance is seen near the 50-day moving average at 2.43. Medium term momentum is negative as the MACD (moving average convergence divergence) index generated a crossover sell signal. This occurs at the MACD line (the 12-day moving average minus the 26-day moving average) crosses below the MACD signal line (the 9-day moving average of the MACD line). The MACD histogram is printing in the red with a downward sloping trajectory which points to lower prices. The RSI (relative strength index) is printing a reading of 43, which is in the middle of the neutral range and reflects consolidation.

Natural gas feedstock deliveries to US liquefaction facilities set a new record last week, reaching 6.3 billion cubic feet per day on July 4 and July 7, 2019. They averaged 6.1 Bcf per day for the report week the highest weekly average to date according to the EIA. Flows to the newly commissioned Cameron Train 1 and Corpus Christi Train 2 increased, indicating that both trains have ramped up feedstock deliveries to full capacity.

Don't miss a thing!

Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Latest Articles

See All

Expand Your Knowledge

See All

Top Promotions

Top Brokers

IMPORTANT DISCLAIMERS
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
RISK DISCLAIMER
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.
FOLLOW US