Natural Gas Price Prediction – Prices Rose on Cold Weather Forecast
Natural gas prices surged higher on Wednesday as colder than normal weather is forecast to cover most of the mid-west for the next 2-weeks. Prices formed and outside day which is a bullish signal. Tropical Depression Beta is moving inland and is no longer a threat. There is another storm over the Caribbean, but it has a very small chance of becoming a tropical cyclone in the next 48-hours according to NOAA.
Technical Analysis
Natural gas prices surged 6.9% reversing Tuesday’s decline. Prices formed an outside day, which is a higher high a lower low, and a higher close which is a bullish signal. Short term momentum has turned positive as the fast stochastic generated a crossover buy signal. Medium-term momentum is negative but the trajectory his turning upward which points to consolidation.
Demand Declined
Demand falls, driven by declines in power generation. Temperatures averaged 65–70 degrees Fahrenheit across most of the Lower 48 states, reducing cooling demand and energy consumption. Total U.S. consumption of natural gas fell by 3.0% compared with the previous report week, according to data from the EIA. Natural gas consumed for power generation declined by 6.3% week over week. In the residential and commercial sectors, consumption increased by 2.7%.
This article was originally posted on FX Empire
