Can buyers push prices beyond the major resistance?
A sustained move above $4.020 could bridge the gap between $4.090 and $4.148 on Monday, indicating that it could potentially drive prices by showing stronger purchase interest. If this bullish momentum continues, traders can see last week's high test at $4.476, setting a key resistance level in the market.
On the back, if the seller regains control, the next purchase opportunity could appear at $3.733 pivot or a 50-day moving average of $3.370. These levels of support may attract fresh buyers, taking into account the wider uptrends.
Storage concerns provide fundamental market support
Nymex natural gas futures in March were acquired early Tuesday, with April futures also rising 4.7 cents to $4.029. Market participants remain wary of tightening the market balance, particularly with potential supply challenges ahead of the next peak demand season.
Andy Huenefeld, managing partner at Pinebrook Energy Advisors, said that while the worst winter may be over, “the basic background is still supportive.”
Short sellers and opportunistic buyers promote volatility
US natural gas futures are stable after Monday's pullback caused by warm weather forecasts. According to Gary Cunningham of Tradition Energy, the market saw “opportunistic purchases and profits from short sellers,” contributing to the modest profits on Tuesday.
While forecasting weather in March remains a bearish factor, Cunningham believes basic support is likely to remain priced above the $4 level for the rest of 2025.
