Natural gas prices rebounded on Tuesday and closed higher for the first time in 5-sessions. Warmer than normal weather is expected to cover most of the United States for the next 6-10 and 8-14 days according to the National Oceanic Atmospheric Administration. Currently, there are no tropical cyclones expected to form in the Atlantic for the next 48-hours, according to NOAA. Natural gas production was flat week over week.
Natural gas prices rebounded and closed higher breaking a 5-day losing streak. Support is seen at the 50-day moving average at 2.78. Resistance is seen near the 10-day moving average at 2.97. Short-term momentum has turned positive as the fast stochastic generated a crossover buy signal. The current reading on the fast stochastic is 22, up from 16, which could foreshadow a correction. Medium-term momentum is negative as the MACD (moving average convergence divergence) histogram is printing in the red with a downward sloping trajectory which points to lower prices.
Natural Gas Production is Unchanged
U.S. production of natural gas was flat week over week. According to data from the EIA, the average total supply of natural gas fell slightly by 0.3% compared with the previous report week. Dry natural gas production remained unchanged week over week. Average net imports from Canada decreased by 6.2% from last week.