Invest in natural gas to capture $3.500 in growth amid soaring demand

After recently dipping to the $3.247 local low, natural gas is showing signs of a rebound. Buyers are now stepping back in, pushing prices toward $3.320 and signaling a potential shift in momentum.

Technical indicators on the daily chart are starting to support this narrative. The Stochastic Oscillator (5, 3, 3) is cooling off from its overbought peak hit on October 27. Interestingly, even though the %K line hasn't reached the oversold zone yet, it is picking up steam, setting the stage for a potential bounce. Concurrently, the Chaikin Oscillator, while still in deeply negative territory, shows a minor easing of bearish pressure, thus suggesting a potential stabilization in volume flow that could favor buyers.

For the bulls to really take charge, the price needs to cleanly break above the key resistance at $3.390. If it succeeds, a run toward the more significant $3.500 high is in play. On the downside, the critical level to watch is the $3.250 support. In case that taps out, traders could see a move down toward $3.180. For now, being stuck between these two levels gives investors enough room to make a new move up, as long as buyer interest holds.

The broader market is caught between a few conflicting forces. Predictions for warmer weather in November and rising stockpiles are weighing on fuel, but strong demand from power plants and steady LNG exports are offsetting this effect. An extra layer of support comes from the tense situation in Europe, where Norwegian supply cuts are propping up global prices. With all these mixed signals, the market will likely spend the next few days bouncing between $3.200 and $3.400 as it searches for a stable footing.

Consider the trading plan down below:

Buy natural gas at the current price, or when it falls against the backdrop of inventory data publication, from $3.250. Take profit: $3.500. Stop loss: $3.180.

This forecast is valid between October 30 and November 6, 2025.