Natural Gas Price Prediction – Rebounds but Trend Points to Lower Prices

David Becker
Natural Gas
Natural Gas

Natural gas prices bounced from session lows making a lower low which keeps the downtrend in place. This comes despite a rebound in price action which saw prices close up 1.3%, but unable to take out Tuesday’s highs. Traders await Thursday inventory report from the Department of Energy. While producer prices in the U.S. increased by more than expected rising by 3.5% year over year, it was pulled down by natural gas prices which are lower on a year over year basis. Prices could get a boost as Donald Trump shamed Germany today for getting their natural gas from Russia. The U.S. can now produce LNG gas which can be shipped by companies like Cheniere Energy.

The Weather Has Moderated Allowing Prices to Slide

The weather over the next 2-weeks is expected to be mixed with warm weather in both the east and west coasts, and normal weather in the mid-west. The moderate temperatures should limit unexpected cooling demand. This comes on the heels of the hottest July 6, on record on southern California reaching temperate of 110 F. Natural gas inventories are in the lower end of the 5-year range below the 5-year average but above the lower end of the range.

The trend is pointing to lower prices as the 10-day moving average is poised to cross below the 200-day moving average which shows that a short-term downtrend is now in place. Resistance is seen near the 200-day moving average at 2.87, while support is seen near an upward sloping trend line that comes in near 2.67. Momentum is negative as the MACD (moving average convergence divergence) histogram prints in the red with a downward sloping trajectory which points to lower prices for natural gas. The relative strength index (RSI) moved higher and is in the middle of the neutral range which reflects consolidation.

Don't miss a thing!
Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Latest Articles

See All

Expand Your Knowledge

See All
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.