Natural Gas Price Forecast – Price Slide Forming the Doji Day

key ideas

  • Natural gas prices fell, but stabilized.
  • Prices formed a Doji day.
  • The weather is expected to be warmer than normal in the West and South.

On Tuesday, natural gas prices moved lower but ended session lows forming a Doji Day which is a sign of indecision. According to the National Oceanic Atmospheric Administration, weather is expected to be warmer than normal across much of the West Southeast for the next 6-10 and 8-14 days.

Gas arriving at LNG terminals has declined due to a fire at the Freeport LNG natural gas liquefaction plant in South Texas on June 8, 2022. The fire caused the facility to shut down completely. The closure of the Freeport LNG facility, located south of Houston on the Gulf Coast, will reduce the United States’ total liquefied natural gas (LNG) export capacity by approximately 2 billion BCF per day.

Technical analysis

Natural gas prices have formed a Doji day which is a sign of indecision. Support is visible near a horizontal trendline which comes in at 6.73.

The short-term momentum turned negative as the Rapid Stochastic generated a cross sell signal. Prices are oversold as the Fast Stochastic shows a reading of 9, below the oversold trigger level of 20.

The medium term momentum turned negative as the MACD (Moving Average Convergence Divergence) generated a cross sell signal. This scenario occurs when the MACD line (the 12-day moving average minus the 26-day moving average) crosses below the MACD signal line (the 9-day moving average of the MACD line). The MACD histogram prints in negative territory with a downward trajectory that indicates falling prices.