Natural Gas Prices Hit Resistance Ahead of Thursday's Rollover

Natural gas prices are testing the $2.80 resistance level in early trading on Monday.

Despite still having a surplus of supply in the US, which suppresses pricing, traders are looking forward to the rollover on Thursday, when the October contract will begin.

The 50-day EMA is just above current prices, and Christopher Lewis notes that this could be part of what's happening here - people closing out short positions ahead of the rollover.

October tends to be a better contract than September, which is currently being closed out, with temperatures starting to drop slightly.