Natural Gas Prices Rebound but Decline 7% This Week
On Friday, natural gas prices rebounded, rising 5% but finished the week down more than 7%. According to a recent National Oceanic Atmospheric Administration report, much colder than normal weather is expected to cover most of the Mid-West and North East, and warmer than average weather will cover most of the West Coast for the next 6-10 days. The weather is then expected to moderate over the 8-14 day period. U.S. natural gas supply was an unchanged week over week.
On Friday, natural gas prices rebounded 4.8% but finished the week in the red. Resistant is seen near the 200-day moving average at 4.08. Support is seen near the December lows at 3.53. Short-term momentum is positive as the fast stochastic generated a crossover buy signal. Medium-term momentum is positive but decelerating as the MACD (moving average convergence divergence) histogram is printing in positive territory with a declining trajectory which points to consolidation.
U.S. Natural gas was Flat
U.S. natural gas supply is unchanged this report week. According to data from the EIA, the average total supply of natural gas remained the same as the previous report week, averaging 99.9 Bcf per day. Dry natural gas production decreased by 0.3% compared with the previous report week, which was offset by higher average net imports from Canada that increased 5.1% from last week.