Natural Gas Price Prediction – Prices Whipsaw and Finish Unchanged
Natural gas prices whipsawed initially moving lower, breaking down through support and the jerking higher to close near the open. Storms continue to brew in the Gulf of Mexico. Tropical depression number 22 has now formed. Storms in the Gulf of knocked out approximately 25% of the natural gas that is produced in the Gulf of Mexico and nearly 50% of the oil. Hurricane Teddy has been upgraded to a category 3 storm but is not expected to hit US natural gas installations. Tropical storm Wilfred has formed in the Atlantic Ocean and is on a path to hit the United States.
Natural gas prices whipsawed on Friday, moving lower and testing support near an upward sloping trendline that comes in near 1.97. Resistance is seen near the 50-day moving average at 2.26. The 10-day moving average is poised to cross below the 50-day moving average which would mean that a medium-term downtrend is now in place. Short term momentum continues to whipsaw as the fast stochastic generated a crossover buy signal in oversold territory. The current reading on the fast stochastic is 16, below the oversold trigger level of 20 which could foreshadow a correction.
Rig Count is Static
Baker Hughes reported on Friday that the natural gas rig count increased by 2. The number of oil rigs in the United States fell by 1 to 179. The total number of active oil and gas rigs increased for the week by 1, with oil rigs falling by 1 and gas rigs increasing by 2. Total oil and gas rigs in the United States are now down by 613 compared to this time last year.