Natural gas prices whipsawed rebounding into the close of the session after testing support levels. Demand during the last week rose as the electric power sector started to rebound as restrictions have been mitigated.
Natural gas prices tested support but then rallied into the close of the session. Prices hit support near the June lows but then rebounded and close in the black. Resistance is seen near the 10-day moving average at 1.93. Short-term momentum is neutral as the fast stochastic continues to flip flop making buy and sell signals. Medium-term momentum is negative but turning neutral as the MACD (moving average convergence divergence) histogram prints in the red with a rising trajectory which points to consolidation.
Demand is Rising
Natural gas demand is rising because of electric power sector demand. Total U.S. consumption of natural gas rose by 3.9% compared with the previous report week, according to data from the EIA. Natural gas consumed for power generation climbed by 10.1% week over week. In the residential and commercial sectors, consumption declined by 5.9%. Industrial sector consumption decreased by 0.3% week over week. Natural gas exports to Mexico increased 4.8%.
This article was originally posted on FX Empire
More From FXEMPIRE:
- USD/CAD Daily Forecast – The Downside Trend Continues
- GBP/USD Price Forecast – British Pound Slowing Down
- Crude Oil Price Update – Contrarian View: Deluge of Bullish Articles Tips Market Lower
- Natural Gas Price Forecast – Natural Gas Markets Testing Trendline
- Gold Price Prediction – Prices Rebound but Remain Rangebound
- Natural Gas Price Prediction – Prices Rebound on Rising Demand