Natural Gas Price Forecast Summary

On January 9, 2026, natural gas prices experienced a significant decline, reaching a new retracement low of $3.13. This drop marked a break below two critical support levels, indicating a strong bearish trend. The article discusses the implications of this decline and the potential for further downward movement in natural gas prices.

Key Points from the Analysis

• Current Price Movement: Natural gas prices fell sharply, confirming a bearish continuation pattern with a close below the $3.24 level, which corresponds to the 78.6% Fibonacci retracement of the previous upswing.
• Support Levels: The breakdown suggests a likely test of long-term trendline support. If this support fails, prices could target lower levels between $2.95 and $2.86, which includes significant Fibonacci retracement levels and previous swing lows.
• Quarterly Structure: The long-term quarterly pattern indicates that major support is expected above $2.89, following a bullish reversal that occurred in Q4 2025.
• Resistance Confirmation: The 200-day moving average has confirmed resistance, suggesting that buyers are hesitant to enter the market until prices reach a more favorable level.
• Post-Breakout Analysis: The current decline is viewed as a pullback following a breakout from a bullish falling wedge pattern observed in October. A bottoming out could lead to another sharp advance in prices.

Conclusion

The analysis indicates that natural gas is currently in a bearish phase, with significant downward pressure and the potential for further declines if key support levels are breached. Traders should monitor these levels closely, as they will be crucial in determining the future direction of natural gas prices.

Author Information

This analysis was authored by Bruce Powers, a seasoned finance professional with over 20 years of experience in financial markets, specializing in futures trading and technical analysis.