Natural Gas Price Prediction - Prices to Rise on EIA's Positive Prognosis

Natural gas prices rose substantially for the second consecutive trading session on Wednesday. The National Oceanic and Atmospheric Administration predicts that for the next 6 to 10 days, the majority of the South will see weather that is warmer than average. In the upcoming week, it is anticipated that inventories would increase.

The most recent week is anticipated to see a 66 Bcf increase in natural gas stockpiles, according to survey provider Estimize. The release follows the addition of 55 Bcf to stockpiles. In its short-term energy forecast, the EIA projected that natural gas prices will average $8.4 per MMBtu in 2022. 

Technical Evaluation

Wednesday saw a significant increase in natural gas prices, the second straight day of gains. Prices reclaimed resistance, which is presently providing support close to the 20-day moving average at 7.32. Resistance is anticipated near the May highs, at $8.99.

As the fast stochastic generated a crossing buy signal, near-term momentum has turned positive.

Negative momentum has developed in the medium term. The MACD (moving average convergence divergence) signaled a sell crossover. This occurs when the MACD line (12-day moving average minus 26-day moving average) crosses beneath the MACD signal line (the 9-day moving average of the MACD line).

The MACD histogram is in negative territory and sloping downward, indicating that prices will decline.