Natural Gas Price Prediction – Prices Tumble Dropping 7%
Natural gas prices continued to break down support levels ahead of Thursday’s inventory report from the Department of Energy. Expectations are for a 50 Bcf draw according to survey provider Estimize. The weather is expected much warmer than normal throughout the entire United States for the next 2-weeks which should put downward pressure on natural gas demand.
Technical Analysis
On Wednesday, natural gas prices dropped falling 7%, through to support near the November lows at 4.65, which is now resistance. Target support is the July lows at 3.60. 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 reversed and turned negative as the MACD (moving average convergence divergence) is about to generate a crossover sell signal.
LNG Exports Rise
U.S. LNG exports have increased this week from last week. Twenty-two LNG vessels with a combined LNG-carrying capacity of 79 Bcf departed the United States between November 11 and November 17, 2021, according to shipping data provided by the EIA.
