Natural Gas Prices Rise 15.6% for the Week

Key Insights

• Natural gas prices hit a fresh 13-year high.
• The natural gas rig count grew by two, according to Baker Hughes.
• Reports surfaced that Europe was drafting a sanction to halt Russian imports.

This message sounds like a recording. Natural gas prices hit a 13-year and closed near the day’s highs. Rig count grew by two, which is light related to the rise in prices. LNG demand remains strong, and natural gas arrivals at LNG terminals rebounded to 12.7 Bcf per day.

According to the National Oceanic Atmospheric Administration, the weather is expected to be colder than normal throughout the East Coast. However, warm weather will soon moderate temperatures which is reflected in the 8-14 days.

Technical Analysis

Natural gas prices hit a fresh 13-year and closed at the highs foreshadowing higher prices. Prices rose nearly 16% for the week.  Target resistance is seen near the July 2008 highs at 13.68. Support is seen near the 10-day moving average at 6.37.

Short-term momentum has reversed and turned positive as the fast stochastic generated a crossover buy signal. Prices are overbought. The fast stochastic is printing a reading of 97, above the overbought trigger level of 80. Additionally, the RSI is printing a reading of 83, above the overbought trigger level of 70.

Medium-term momentum has turned positive. The MACD (moving average convergence divergence) histogram is printing in positive territory with an upward sloping trajectory which points to an acceleration in the underlying price of natural gas.