Natural Gas News: 50-Day MA Becomes Battleground as Futures Seek Direction

Traders stepped in Monday to defend key support, pushing November Nymex natural gas up 0.99% to $3.374. Yesterday’s low of $3.296 held just above the 50-day MA, drawing fresh buying interest.

The market is now straddling minor resistance at $3.441. A confirmed move above would signal strength and attract technical buyers, with upside targets near $3.585. If rejected, expect a return to the $3.324–$3.296 range.

Cooler Forecasts Boost Heating Demand Expectations

The bullish tone is underpinned by updated weather models showing a notable shift toward cooler conditions between October 16–20. The first strong fall front is expected to sweep the Midwest and Northeast this week, boosting heating demand.

According to NatGasWeather, the mix of heating and cooling degree days will improve, following a warmer-than-normal start to fall. The European model added several total degree days (TDDs) over the weekend, helping to lift futures early this week.

EIA Storage Data and Production Trends Send Mixed Signals

Last week’s EIA report added another layer of support, with inventories rising just +53 Bcf, well below expectations of +64 Bcf and the 5-year average of +85 Bcf. However, production remains near record highs.