Natural Gas Price Prediction – Prices Rise but Settle Off Highs
Natural gas prices moved higher on Thursday but finished off the session highs up 3%. Prices were more elevated before the Invenrtntory report from the Department of Energy, despite a smaller than expected build. According to a report from NOAA, the weather is expected to remain warmer than normal over the next two weeks.
Technical Analysis
Natural gas prices moved higher through resistance, which is now supported at the 10-day moving average of 5.68. Momentum has turned negative as the MACD (moving average convergence divergence) index generated a crossover sell signal. This occurs as the MACD line (the 12-day moving average minus the 26-day moving average) crosses below the MACD signal line. The MACD histogram is printing in negative territory with a downward sloping trajectory which points to lower prices. Short-term momentum has turned positive as the fast stochastic generated a crossover buy signal.
Inventories Rose Less than Expected
According to EIA estimates, the working gas in storage was 3,369 Bcf as of Friday, October 8, 2021. This move represents a net increase of 81 Bcf from the previous week. Expectations were for a 106 Bcf build, according to survey provider Estimize. Stocks were 501 Bcf less than last year at this time and 174 Bcf below the five-year average of 3,543 Bcf. At 3,369 Bcf, the total working gas is within the five-year historical range.
This article was originally posted on FX Empire
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