Natural Gas Prices Rebound Following Last Weeks Slide
- Natural gas prices rebounded on Monday.
- The weather is expected to be colder than usual.
- Natural gas arrivals at export terminals remain strong.
Natural gas prices rebounded and closed higher after dropping, dropping 3.7% on Friday and falling 8.5% for the week. LNG exports rose in the latest week and LNG demand remains strong, and natural gas arrivals at LNG terminals continue to climb. The weather is expected to be colder than average for the next 2-weeks.
According to the EIA, U.S. LNG exports increase by six vessels this week from last week. Twenty-six LNG vessels with a combined LNG-carrying capacity of 97 Bcf departed the United States between April 14 and April 20. This report week had the highest number of export cargoes departing the United States since the week of February 3 to February 9, 2022.
Natural gas prices rose on Monday. Prices bounced near support at former resistance near the October highs at 6.46. Resistance is seen near the 10-day moving average at 6.97. Target resistance is seen near the April highs at 8.06.
Short-term momentum has reversed and turned negative as the fast stochastic generated a crossover sell signal.
Medium-term momentum has negative. The MACD (moving average convergence divergence) generated a crossover sell signal. This scenario occurs when the MACD line (the 12-day moving average minus the 26-day moving average crosses below the MACD signal line (the 9-day moving average of the MACD line.
The MACD histogram is printing in negative territory with a declining trajectory which points to lower prices.