After four consecutive trading sessions of increases, natural gas prices reversed their upward trend on Friday. The National Oceanic and Atmospheric Administration predicts that the weather will be warmer than average for the next 6-10 days and 8-14 days throughout the majority of the United States.
As the temperature rises and cooling demand grows, prices climb. According to the LNG export tracker, LNG exports rose from 12.2 to 13.29 Dth. The natural gas supply in the United States declines from week to week. The overall average supply of natural gas decreased to 100,2 Bcf/d, a decrease of 0.4% from the previous week.
On Monday, natural gas prices increased to the mid-$8.7 range as LNG shipments soared compared to the previous week and supplies declined. Near the 10-day moving average of 8.02, there is support.
There is resistance at the highs of May 9. As a result of the crossing sell signal given by the fast stochastic, the short-term momentum went negative.
The momentum for the medium term has become favorable. The MACD (moving average convergence divergence) histogram is in neutral region with an upward slope, indicating upward trading activity.