Natural gas prices moved lower on Wednesday ahead of Thursday’s inventory report from the Department of Energy. Expectations are for a 71 BCF build according to survey provider Estimize. There is one disturbance in the Caribbean that has a 10% chance of turning into a tropical cyclone according to the National Oceanic Atmospheric Administration. The weather is expected to turn mild and then warmer than normal over the next two weeks which should reduce natural gas heating demand.
Natural Gas prices moved lower on Wednesday but finished well off the session lows. Prices hit the 2.42 level before bouncing into the close to settle down 1.3% on the day. Prices broke through trend line support which is now seen as resistance at 2.54. The 10-day moving average crossed below the 50-day moving average which means that a medium-term downtrend is now in place. Momentum is negative as the MACD (moving average convergence divergence) index recently generated a crossover sell signal. The MACD histogram is printing in negative territory with a declining trajectory which points to lower prices.
LNG Exports Decline
The EIA reports that U.S. LNG exports decrease week over week. Ten LNG vessels with a combined LNG-carrying capacity of 37 Bcf departed the United States between September 17 and September 23, 2020, according to shipping data provided by the Energy Information Administration.
This article was originally posted on FX Empire
More From FXEMPIRE:
- Walt Disney Could Trap Complacent Shareholders
- European Equities: A Month in Review – September 2020
- AUD/USD Forex Technical Analysis – Major Challenge for Bulls is .7210 – .7258 Retracement Zone
- Crude Oil Price Forecast – Crude Oil Markets Continue to Do Nothing
- Gold Price Prediction – Prices Edge Lower as US Yields Rise
- Natural Gas Price Prediction – Prices Drop Through Support Ahead of Inventory Report