Gas Prices Edge Lower as 50-Day MA Rejection Tests Heat and LNG

Natural Gas futures are trading lower on Tuesday after being rejected by the 50-day moving average at $2.915.

The 50-day moving average appears to be the key indicator controlling the direction of the trade, and a sustained move over it could launch a strong rally into last week's high at $2.990.

If prices break through this level, they may extend the surge into the intermediate retracement zone at $3.044 to $3.133, which is the last potential resistance before the 200-day moving average at $3.396.

However, if the price moves under the 50-day moving average, it would indicate that sellers are still in control and could lead to a retest of the short-term retracement zone at $2.829 to $2.791.