Yahoo Finance Prices Consolidate as LNG Exports Slip
Natural gas prices edged higher on Tuesday but continue to create a bear flag pattern. According to a recent National Oceanic Atmospheric Administration report, colder than normal weather is expected to cover most of the West and planes, and warmer than average weather will cover most of the mid-West for the next 6-10 days The North East is expected to be cooler than normal. LNG exports eased in the latest week. Prices are buoyed by strong demand on Europe. LNG shipments are now getting diverted from Asia to Europe to cover for the lack of supplies due to a potential conflict with Russia.
Technical Analysis
On Tuesday, natural gas prices edged higher and continue to form a bear flag pattern which is a pause that refreshes lower. Resistant is seen near the 200-day moving average at 4.08. Support is seen near the December lows at 3.53. Short-term momentum is positive as the fast stochastic generated a crossover buy signal. Medium-term momentum is positive but decelerating as the MACD (moving average convergence divergence) histogram is printing in positive territory with a declining trajectory which points to consolidation.
LNG Exports are Lower
U.S. LNG exports are down by five vessels this week from last week. Twenty LNG vessels with a combined LNG-carrying capacity of 76 Bcf departed the United States between January 13 and January 19, 2022, according to shipping data provided by the Energy Information Administration.
This article was originally posted on FX Empire
