Natural gas is grinding sideways just below the $3.00 mark, trapped under both its 50-day and 200-day moving averages. Buyers are defending $2.50 support as traders wait on weather headlines and Thursday’s storage report for a catalyst.
Natural gas is stuck below $3.00, with the 50-day EMA near 3.09 and the 200-day EMA around 3.25 capping any attempt to rally. The price sits near $2.90, and holding under both moving averages keeps the longer-term trend pointed down.
Buyers dig in at $2.50
Trading has been bearish over the past few weeks, but the market is starting to stabilize near $2.50. That zone has offered support in the past, and buyers appear to be stepping in to defend it. A break below $2.50 could open up a much deeper drop toward $2.00.
The $3.00 handle carries weight of its own. It is a large, round figure with clear historical importance, and reclaiming it would take a real shift in momentum. A push back above the 50-day EMA would put the 200-day EMA near 3.25 in view as the next target.
Storage report looms as the catalyst
The question now is what could turn the tape. According to FXEmpire, a catalyst may come from weather headlines or the storage report due Thursday. Until then, the market looks flat and sideways as traders wait for more clarity.
Supply data offers little help to the bulls. Natural Gas Intelligence reported that East region storage began July a mere 1.7% above the five-year average — the leanest margin in the Lower 48 — even as the region navigated a major round of heat waves and kept a surplus. Regional demand has since pulled back, and total supply is proving ample.
Sources: FXEmpire, Natural Gas Intelligence (snippet-based)
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