Natural Gas Price Prediction – Prices Rise on Small Rig Count
Natural gas prices edged higher but was unable to pierce through resistance. The natural gas rig count was in line with expectations. There is no tropical disturbance active in the Atlantic Ocean over the next 48-hours that is expected to turn into a tropical cyclone. According to NOAA, the weather is expected to remain warmer than normal through most of the mid-West and East Coast for the next 2-weeks. S.S. supply of natural gas rose in the latest week.
Technical Analysis
Natural gas prices moved higher on Friday. Support is seen near the 50-day moving average of 4.94. Resistance is seen near the 10-day moving average at 5.31. Prices have bounced from an oversold condition this week. The fast stochastic is printing a reading of 25, up from an oversold reading of 18.. Short-term momentum has turned positive as the fast stochastic generated a crossover buy signal in oversold territory. Medium-term momentum has turned negative as the MACD (moving average convergence divergence) histogram prints in the red with a downward sloping trajectory which points to lower prices.
The Natural Gas Rig Count Increased
According to Oil Service giant Baker Hughes, the U.S. natural gas rig count climbed by 1 to 99. This was in line with expectations. The total rig count, which includes oil fell by one, with drilling rigs targeting crude oil in the U.S. falling by 2 to 443.
This article was originally posted on FX Empire
