Natural Gas Prices Rebound After Weeks of Decline

Natural gas prices recovered and finished higher following a 3.7 percent decline on Friday and an 8.5 percent decline for the week. LNG exports increased last week, and demand for LNG remains robust, as natural gas arrivals at LNG terminals continue to rise. For the next two weeks, the weather is forecast to be colder than typical.

The EIA reports that US LNG shipments increased by six vessels this week compared to last week. Between April 14 and April 20, 26 LNG shipments with a combined capacity of 97 Bcf exited the United States. This report week saw the most export cargoes exit the United States since the week of February 3–9, 2022.

Technical Evaluation

On Monday, natural gas prices increased. Prices rebounded near support near the October highs of 6.46. Near the 10-day moving average of 6.97, resistance is seen. Near the April highs of 8.06, the target resistance is visible.

The short-term momentum has flipped and become negative as a crossover sell signal was triggered by the fast stochastic.

The medium-term momentum is bearish. A crossover sell signal was given by the MACD (moving average convergence divergence). This occurs when the MACD line (the 12-day moving average minus the 26-day moving average) falls below the MACD signal line (the MACD line's 9-day moving average).

The MACD histogram is printed in negative zone with a downward trend, indicating that prices are falling.