Natural Gas Price Prediction – Prices Whipsaw and Close Lower

Natural gas prices whipsawed on Tuesday and closed lower after making a 2-week high. The whipsaw price action occurred after natural gas prices rallied 10% over a two-week period. The weather is expected to be warmer than normal over the next 6-10 days and the next 8-14 days, which will reduce heating demand.

Technical Analysis

Natural gas prices whipsawed and moved lower on Tuesday. Support is seen near the 10-day moving average at 2.58. Resistance is seen near the 50-day moving average at 2.75. Medium-term momentum has turned positive as the MACD (moving average convergence divergence) index generated a crossover buy signal. This occurs as the MACD line (the 12-day moving average minus the 26-day moving average) crosses above the MACD signal line (the 9-day moving average of the MACD line). The MACD histogram is printing in positive territory with an upward sloping trajectory which points to higher prices.

LNG Exports Rise

U.S. LNG exports increase week over week. Nineteen LNG vessels with a combined LNG-carrying capacity of 71 Bcf departed the United States between March 18 and March 24, 2021, according to shipping data provided by the EIA.