Natural Gas Price Prediction – Prices Surge on LNG Exports

Natural gas prices broke out on Friday, rising more than 5%. Most of the gains are attributed to the increase the US is seeing in natural gas exports. The weather is expected to remain warmer than normal over most of the west coast and mid-West over the next 8-14 days while the weather is expected to be cooler in the north-East.

Technical Analysis

Natural gas prices broke out rising 5.25% for the trading session. Resistance is seen near the February high3.31. Support is seen near former resistance near the May highs at 3.2. Additional support is seen near the 10-day moving average at 3.11. Short-term momentum whipsawed and moved higher as the fast stochastic generated a crossover buy signal. Medium-term momentum has turned positive as the MACD (moving average convergence divergence) generated a crossover buy signal. This occurs when the MACD line (the 12-day moving average minus the 26-day moving average) crosses above the MACD signal line (the 9-day moving average of the MACD line).

Rigs Rise

Natutural gas rigs went online in the latest week according to a report released on Friday by Baker Hughes. The number of rigs gas-focused rigs moved up three to 129. The number of rigs classified as chasing both oil and gas was steady at one.

This article was originally posted on FX Empire

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