Natural gas prices edge lower but continued to trend higher, poised to test resistance near the 50-day moving average at 2.79. Support is seen near the 10-day moving average at 2.56. Medium-term momentum has turned positive as the MACD (moving average convergence divergence) index recently generated a crossover buy signal. Prices are overbought. The fast stochastic is printing a reading of 89, above the overbought trigger level of 80, foreshadowing a correction.
Demand falls across all domestic sectors. Total U.S. consumption of natural gas fell by 2.9% compared with the previous report week, according to data the EIA. Natural gas consumed for power generation climbed by 2.7% week over week. In the residential and commercial sectors, consumption declined by 7.6%. Industrial sector consumption decreased by 0.9% week over week. Natural gas exports to Mexico increased 8.2%. Natural gas deliveries to U.S. liquefied natural gas (were about the same as last week averaging 11.0 Bcf/d.
Read More: Natural Gas Price Prediction – Prices Slip as Demand Falls