The critical price target to watch is the $3 level, which represents a significant resistance point. Achieving a breakthrough at this level requires a catalyst to drive prices higher. Potential catalysts could include supply disruptions from Australia or abrupt changes in European gas storage levels due to surges in demand. In such scenarios, Gas prices may rally to $3.20, testing the upper boundary of the ascending trend channel.
Conversely, on the downside, the 200-day Simple Moving Average (SMA) at $2.89 has transitioned into a support level. A breach of this support could pave the way for further declines. The next support level to monitor is at $2.73, aligning with the 55-day SMA. This level is expected to act as a buffer against steep declines in the commodity's price.
Natural Gas remains in a volatile market environment, with various factors influencing its price dynamics. Achieving a breakthrough above the $3 resistance level will require a significant catalyst, such as supply disruptions or shifts in storage levels. Conversely, key support levels at $2.89 and $2.73 are in place to provide stability and prevent sharp declines. Traders and investors should closely monitor these price levels and be prepared for potential market-moving events in the natural gas sector.
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