Natural Gas Price Crash: Sell-Off Alert
Natural gas prices are under pressure as futures struggle to break through $3.722. Mild weather across the U.S.is substantially reducing demand, adding to the downward trajectory of natural gas prices. A bearish crossover further fuels the sell-off,signaling potential price reversals. President Trump’s trade policies, especially the postponement of tariffs, are also influencing commodity prices, keeping natural gas in check. With high inventory levels and limited upside potential until summer cooling demand increases, the market faces critical resistance levels. News Directory 3 keeps you informed,so stay ahead of market fluctuations.Discover what’s next in the natural gas market, and learn how to position yourself.
Natural Gas Futures Face Resistance amid Mild Weather
Updated May 27, 2025
Natural gas futures are struggling to break through resistance at $3.722, hampered by forecasts of mild weather and low demand. A bearish crossover, with the 50-day moving average dipping below the 100-day moving average, adds to the downward pressure on natural gas prices.
Natgasweather.com reports that much of the eastern U.S. will experience showers and thunderstorms with temperatures in the 60s and 70s. Texas and the South will also see cooling, further reducing national demand for natural gas in the coming days. Low demand for natural gas has capped the upside for natural gas futures.
president Donald Trump’s decision to postpone imposing tariffs on the European Union may also contribute to keeping natural gas prices in check. Any move by Trump to resolve trade relations with major U.S. trading partners could further suppress commodity prices, easing recessionary fears.
Natural gas futures reached a high of $4.907 on March 10, 2025, amid geopolitical concerns. However, the arrival of spring triggered a sell-off, pushing futures down to $2.857 by April 24,2025. While prices have since rebounded, the upside potential appears limited until summer cooling demand increases. High inventory levels also suggest that price exhaustion may continue if the weather remains mild.
Technical analysis indicates that natural gas futures face immediate resistance at $3.752. A bearish engulfing pattern in the hourly chart suggests a potential price reversal if this level isn’t breached. Key support levels lie at $3.615, $3.472, and $3.390.
The daily chart shows natural gas futures attempting to break above the 100-day moving average at $3.722. However, the bearish crossover could intensify selling pressure. While futures remain above the 50-day moving average at $3.612, failure to sustain prices above $3.722 could attract critically important selling pressure.
On the weekly chart, natural gas futures trading below the 200-day moving average at $3.938 could keep the market in bearish territory. The formation of a ‘Hanging Man’ pattern suggests that selling pressure may persist until cooling demand picks up next month. Any upward movement will likely encounter strong resistance at $3.938.
What’s next
Traders will be closely monitoring weather forecasts and inventory data for signals about future price movements in natural gas futures. Developments in U.S. trade policy could also play a significant role in shaping commodity prices.