Natural Gas Prices Rally on October Rollover, Resistance Looms

The natural gas market has started to rally as it rolls into the October contract, but analysts warn that a key resistance level at $3 is looming. This seasonal shift in the market means that traders are adjusting their strategies from bearish to more neutral, focusing on support and resistance areas. One analyst notes that storage levels in the US are 'absolutely bursting at the seams,' which is not helping the situation.

According to the analyst, breaking above $3 would be a positive sign for natural gas prices. However, it's also possible that sellers might step in at this level. The market is currently range-bound and may trend slightly higher on average as we head into the winter months.

The two main factors that could drive up natural gas prices are colder temperatures in the US and Europe's potential need to import liquefied natural gas from the US. This would lead to a decrease in supply, which would likely boost prices.