Natural Gas Price Prediction – Prices Slide on Warm Weather Forecast
Natural gas prices slipped down to support levels. The weather is expected much warmer than normal throughout the entire United States for the next 2-weeks which should put downward pressure on natural gas demand.
Technical Analysis
On Monday, natural gas prices rise fell which to support near the November lows at 4.65. Resistance is seen near the 10-day moving average at 4.96.. The 10-day moving average has crossed below the 50-day moving average, which means a short-term downtrend is in place. Short-term momentum has turned negative as the fast stochastic generated a crossover sell signal. Medium-term momentum is reversed and turned negative as the MACD (moving average convergence divergence) is about to generate a crossover sell signal.
U.S. supply of natural gas is down this report week as a result of decreasing dry natural gas production. According to data from the EIA, the average total supply of natural gas fell to 99.3 Bcf per day this report week, a 1.7% decrease from the previous report week’s total of 101.0 Bcf per day.
This article was originally posted on FX Empire
