Natural Gas Price Prediction – Prices Form Inside Day as Short-term Momentum Turns Negative

Natural gas prices whipsawed, forming an inside day but closing at the lows of the session. According to the latest report from the National Oceanic Atmospheric Administration, the weather is expected to be warmer than normal for the next 6-10 and 8-14 days. U.S. LNG exports decline week over a week, according to the Energy Information Administration, likely reducing demand.

Technical Analysis

Natural gas prices formed an inside day which is a sign of indecision. The rebound seen on Monday was reversed, with prices closing on the lows of the trading session. Resistance is seen near the 10-day moving average at 2.56, support is seen near the March lows at 2.42. Short-term momentum has turned negative as the fast stochastic generated a crossover sell signal. Medium-term positive momentum is decelerating as the MACD histogram is printing in positive territory with a flattening trajectory which points to consolidation.

U.S. LNG Exports Decline

U.S. LNG exports decrease week over week. Eighteen LNG vessels with a combined LNG-carrying capacity of 67 Bcf departed the United States between March 11 and March 17, 2021, according to shipping data provided by The Energy Information Administration.