Natural Gas Price Forecast: Bearish Reversal Signals Deeper Drop
Author: Bruce Powers
Published: May 23, 2026
Overview
The article discusses the recent bearish trend in natural gas prices, highlighting a failed bull pennant pattern that has shifted market momentum towards the downside. Key support levels have been breached, indicating potential further declines in natural gas futures.
Key Points
- Failed Bull Pennant: The anticipated breakout from a bull pennant pattern has failed, with natural gas prices dropping below critical support levels.
- Support Breakdown: Natural gas fell through a confluence support zone, which included the 20-day moving average and the 38.2% Fibonacci retracement level, marking a significant shift in market sentiment.
- Next Support Levels: The article identifies potential lower targets, including the 50-day moving average at approximately $2.97 and further support at $2.90 and $2.79, which are validated by Fibonacci retracement levels.
- Long-Term Resistance: The article notes that recent attempts to reclaim the 200-day moving average have failed, indicating persistent selling pressure and a bearish trend that began earlier in the year.
- Momentum Indicators: The failure to reach the 200-day moving average reinforces the bearish outlook, as the market continues to establish lower swing highs.
Conclusion
The analysis suggests that natural gas prices are likely to continue their downward trajectory, with several key support levels now in focus. Traders are advised to monitor these levels closely as the market reacts to ongoing selling pressure and broader economic indicators.
About the Author
Bruce Powers is a seasoned finance professional with over 20 years of experience in financial markets. He holds an MBA and is a CMT® charter holder, having worked in various capacities including head of trading strategy at hedge funds.