Yahoo Finanza Natural Gas Price Prediction – Prices Rally as Momentum Turns Positive
Natural gas prices rebounded about 5% on Monday, but a significant follow-through is unlikely. According to the National Oceanic and Atmospheric Administration, prices will need to get by key resistance levels, as the weather is expected to be warmer than usual over the next 6-10 and 8-14 days. US LNG exported increased week over week, while both demand and supply contracted slightly.
Technical Analysis
Natural gas prices moved higher on Monday rebounded after last week’s slide. Resistance is seen near the 10-day moving average at 2.62 and then the 50-day moving average at 2.68. Support is seen near the December lows at 2.32. Short-term momentum has turned positive as the fast stochastic generated a crossover buy signal. The buy signal was developed in the oversold territory as the index has increased from 6 to 32, which reflects accelerating positive momentum. Medium-term momentum has turned positive as the MACD (moving average convergence divergence) histogram is printed in negative territory with a flat trajectory, reflecting consolidation.
LNG Exports Rise
U.S. LNG exports increase this week, according to the Energy Information Administration. Twenty LNG vessels with a combined LNG-carrying capacity of 72 Bcf departed the United States between January 14 and January 20, 2021. The net withdrawals from storage totaled 187 Bcf for the week ending January 15.
This article was originally posted on FX Empire
