Natural Gas Price Prediction – Prices Whipsaw Ahead of Inventory Report

Natural Gas prices moved higher on Wednesday ahead of Thursday’s inventory report from the Department of Energy. Expectations are for a 76 Bcf draw in stockpiles according to survey provider Estimize. According to a NOAA report, the weather will be warmer than usual for almost all of the United States for the next 6-10 and 8-14 days.  There are no disturbances in the Atlantic or Caribbaean that are expected to become tropical cyclones over the next 48-hours. The volume of natural gas that was flared into the air hit a record in 2019.

Technical analysis

Natural gas prices attempted to move higher but were rejected and finished the sessions on the lows. Support is seen near the September continuation contract lows at 1.80. Prices are oversold. The RSI (relative strength index) is printing a reading of 29 below the oversold trigger level of 30 which could foreshadow a correction. The fast stochastic is printing a reading of 9, below the oversold trigger level of 20 which also reflects the correction’s potential. Momentum remains negative as the MACD (moving average convergence divergence) histogram prints in the red with a downward sloping trajectory which points to lower prices