El Niño and Record Storage Weigh on Natural Gas Futures

Natural gas futures are trading slightly lower early Monday as the market remains above the 50-day moving average at $2.892.

The main trend is up, but a trade below this average will signal weakness and potentially change the trend unless selling pressure takes out the nearest swing bottom at $2.832.

Buyers may show interest on a pullback into the 50% level at $2.847, while a trade through $3.026 will resume the uptrend.

The long-term retracement zone at $3.044 to $3.133 is expected to provide strong resistance, but overcoming this could trigger an acceleration to the upside with the next major target being the 200-day moving average at $3.372.