Natural gas prices moved higher on Tuesday, rebounding 2.25%. Prices are remaining elevated as storm activity is continuing to drive volatility. According to the National Oceanic Atmospheric Administration (NOAA), another storm is moving across the Atlantic that has a 20% chance of becoming a tropical cyclone in the next 48-hours. According to the National Oceanic Atmospheric Administration (NOAA). According to NOAA, the weather is expected to remain warmer than normal on the west-Coast and cooler than normal on the East Coast. U.S. The EIA expects exports and domestic consumption to drive natural gas prices higher in 2022.
Natural gas prices moved higher on Tuesday, rebounding 2.25%. Support near an upward sloping trend line that comes in near 3.17. Resistance is seen near the June highs at 3.37. Short-term momentum has turned positive as the fast stochastic generated a crossover buy signal. The whipsaw motion of the fast stochastic is generally a sign of choppy price action. Medium-term momentum has turned negative as the MACD (moving average convergence divergence) index generated a crossover sell signal. The MACD histogram is printing in negative territory with a flattening trajectory which points to consolidation.
The EIA is Bullish on Prices
The EIA says that U.S. natural gas prices increase during 2021 and 2022 due to expected growth in natural gas consumption and natural gas exports that outpace expected growth in production and imports. The forecast the 2021 Henry Hub natural gas spot price to average $3.07 per million British thermal units on average for the year 2021.
This article was originally posted on FX Empire