Commodities▼ Bearish
Natural Gas Tests $3 Resistance as 50-Day EMA Caps Rally
Natural gas futures test the $3 mark as the 50-day EMA holds, with Middle East tensions and European demand propping up prices despite a seasonally weak period.
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Natural gas futures tested the $3 level again Thursday, with the 50-day EMA holding as resistance for the third session this week. The front-month contract traded near $2.98, up 0.8% on the day.
The $3 mark has been a psychological barrier since late June. The 50-day EMA sits just above the round number, reinforcing the level. The 200-day EMA, a longer-term trend indicator, stands near $3.22, a level not tested since April.
The rally comes as Middle East supply risks and European demand concerns support prices. European natural gas benchmarks have spiked, and any disruption in Qatari LNG flows would tighten the global market, spilling into Henry Hub. Qatar ships LNG to Europe and Asia. An interruption would force European buyers to compete for US cargoes, lifting Henry Hub prices.