Natural Gas Price Prediction – Prices Tumble Falling 13% for the Week

Natural gas prices tumbled on Friday dropping through trend line support and closing down 13% for the week. The weather is expected to be warmer than normal for the next two weeks throughout most of the United States. The Department of Energy reports that as the calendar turns to winter, natural gas in storage is down 3% year over year.

Technical Analysis

Natural gas prices tumbled on Friday dropping 7% and close through trend line support at 4.95, which is now resistance. Support is seen near the August lows at 3.73. The 10-day moving average crossed below the 50-day moving average which means that a short-term downtrend is now in place. Short-term momentum has reversed and turned negative as the fast stochastic generated a crossover sell signal. Medium-term momentum is negative. The MACD (moving average convergence divergence) histogram is printing in negative territory with a declining trajectory which points to lower prices.

Storage is Below Normal

The EIA reports that natural gas in underground storage facilities in the Lower 48 states measured 3,618 billion cubic feet on November 5. The amount of natural gas in storage has been below its previous five-year average since mid-February of this year. Storage levels approached average in late October and early November, the time of year when inventories are typically at their highest and when natural gas begins to be withdrawn as demand rises with colder weather.