U.S. markets close in 56 minutes
  • S&P 500

    4,392.51
    +38.32 (+0.88%)
     
  • Dow 30

    34,266.14
    +346.30 (+1.02%)
     
  • Nasdaq

    14,865.14
    +118.74 (+0.81%)
     
  • Russell 2000

    2,222.48
    +36.29 (+1.66%)
     
  • Crude Oil

    71.98
    +1.49 (+2.11%)
     
  • Gold

    1,771.20
    -7.00 (-0.39%)
     
  • Silver

    22.75
    +0.14 (+0.64%)
     
  • EUR/USD

    1.1692
    -0.0038 (-0.33%)
     
  • 10-Yr Bond

    1.3230
    -0.0010 (-0.08%)
     
  • GBP/USD

    1.3613
    -0.0051 (-0.38%)
     
  • USD/JPY

    109.8870
    +0.6670 (+0.61%)
     
  • BTC-USD

    43,207.10
    +907.55 (+2.15%)
     
  • CMC Crypto 200

    1,082.83
    +42.34 (+4.07%)
     
  • FTSE 100

    7,083.37
    +102.39 (+1.47%)
     
  • Nikkei 225

    29,639.40
    -200.31 (-0.67%)
     

Natural Gas Price Prediction – Prices Rise on Strong Power Generation Demand

  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
·2 min read
In this article:
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.

Natural gas prices continued to break out to fresh contract highs but finished well off the peak of the day. Prices hit a new contract high at $4.18 per MMbtu easing to close up 1% for the day. Warmer than normal weather is expected to cover most of the United States over the next 6-10 and 8-14 days. According to the National Oceanic Atmospheric Administration, there is one tropical storm in the Atlantic or Gulf of Mexico that has a 10% chance of becoming a tropical cyclone over the next 48-hours. U.S. consumption of natural gas rose 1% in the latest week.

Technical Analysis

Natural gas prices continued to rally on Monday. The August contract closed at an all-time high for the 6th consecutive trading session. Target resistance is now the 2018 highs at 4.92. Support is seen near 10-day moving average at 3.84. Short-term momentum has turned positive as the fast stochastic generated a crossover buy signal. Prices are overbought. The current reading on the RSI is 79 above the overbought trigger level of 70 which could foreshadow a correction. Medium-term momentum has turned positive as the MACD (moving average convergence divergence) index generated a crossover buy signal. This occurs as the MACD line crosses above the MACD signal line. The MACD histogram also generated a crossover buy signal.

Power Generation Drives Demand

Natural gas consumption in the electric power sector drives total consumption higher. Total U.S. consumption of natural gas rose by 1.5% compared with the previous report week, according to data from the EIA. Natural gas consumed for power generation climbed by 3.3% week over week as much of the West and Northern Plains continued to experience higher-than-normal temperatures.

This article was originally posted on FX Empire

More From FXEMPIRE: