Natural gas prices rebounded on Monday and consolidate to consolidate. While the outlook continues to be bearish as there is little hope for an uptick in industrial demand, prices appear to be attempting to form a bottom. The weather is expected to be warmer than normal over most of the United States for the next 6-10 and 8-14 days according to the National Oceanic Atmospheric Administration. Supply during the latest week was unchanged.

Natural gas prices rebounded on Monday making a lower low and a lower high but a higher close. Prices were unable to pierce through resistance near the 10-day moving average at 1.70. A break of this level would lead to a test of the March 25 highs at 1.78. Support is seen near the March lows at 1.587. Short term momentum is flat as the fast stochastic hovers near the oversold trigger level of 20, after just generating a crossover buy signal. Medium-term momentum is neutral as the MACD (moving average convergence divergence) histogram prints in the red with a flat trajectory which points to consolidation.

Supply is Unchanged

Supply is flat, according to the EIA. The average total supply of natural gas remained the same as in the previous report week, averaging 98.9 Bcf per day. Dry natural gas production remained unchanged week over week. The average net imports from Canada increased by 6% from last week.

This article was originally posted on FX Empire

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