Natural Gas Price Prediction – Prices Rise Ahead of Inventory Report
Natural gas prices moved higher on Wednesday ahead of Thursday’s inventory report from the Department of Energy. Expectations are for a 73 Bcf build in natural gas stockpiles according to survey provider Estimize. According to the National Oceanic Atmospheric Administration (NOAA), another storm is moving across the Atlantic toward the Caribbean and has a 10% 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.
Technical Analysis
Natural gas prices moved higher on Wednesday closing up 2.5% and making a new high for the contract. Support near the 10-day moving average at 3.25. Resistance is seen near the June highs at 3.38. 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 positive as the MACD (moving average convergence divergence) index generated a crossover buy signal. The MACD histogram is printing in positive territory with an upward sloping trajectory which points to higher prices.
Higher LNG Exports Point to Stronger Demand
U.S. LNG exports increase week over week. Higher exports are a reflection of stronger demand at current levels. Eighteen LNG vessels with a combined LNG-carrying capacity of 65 Bcf departed the United States between June 10 and June 16, 2021, according to shipping data provided by the Energy Information Administration.
This article was originally posted on FX Empire
