Natural gas prices continued to break down support levels ahead of Thursday’s inventory report from the Department of Energy. Expectations are for a 50 Bcf draw according to survey provider Estimize. The weather is expected much warmer than normal throughout the entire United States for the next 2-weeks which should put downward pressure on natural gas demand.
On Wednesday, natural gas prices dropped falling 7%, through to support near the November lows at 4.65, which is now resistance. Target support is the July lows at 3.60. The 10-day moving average has crossed below the 50-day moving average, which means a short-term downtrend is in place. Short-term momentum has turned negative as the fast stochastic generated a crossover sell signal. Medium-term momentum is reversed and turned negative as the MACD (moving average convergence divergence) is about to generate a crossover sell signal.
LNG Exports Rise
U.S. LNG exports have increased this week from last week. Twenty-two LNG vessels with a combined LNG-carrying capacity of 79 Bcf departed the United States between November 11 and November 17, 2021, according to shipping data provided by the EIA.
This article was originally posted on FX Empire