The October natural gas futures contract flew higher on Monday, building on the prior week’s rally and remaining comfortably above a key technical threshold. It settled at $2.613/MMBtu, up 17.9 cents day/day. This followed back-to-back gains to close out last week.
The prompt month, however, may soon face resistance.
“October broke through a major technical hurdle last week by trading and settling above the $2.42 resistance level marked by the top of the horizontal trading channel that had been in place since July,” said NGI’s Patrick Rau, senior vice president of Research & Analysis.
