Natural Gas Price Forecast Summary
On February 24, 2026, Bruce Powers provided an analysis of the natural gas market, highlighting a significant decline in prices. Natural gas fell to a new corrective low of $2.83, breaking below the previous low of $2.87, indicating that sellers are currently in control of the market. The article emphasizes the importance of a daily close below this prior low, which would confirm a bearish continuation signal and position natural gas to test support at the 88.6% Fibonacci retracement level at $2.75.
Key Technical Levels
The analysis notes that the 88.6% retracement zone is a critical support area. If this level holds, it could trigger a bullish reversal, establishing a higher swing low and potentially leading to a rally towards resistance at $4.09, which is the lower swing high from January. The article also discusses a broadening formation in the natural gas market, indicating that price discovery is expanding rather than contracting, which is typically seen after trends.
Market Dynamics
Powers points out that if natural gas prices drop below the recent swing low of $2.58, it could signal a failure of the broadening formation. The recent price action has established a new interim lower swing high at $3.15, which, along with another lower swing high at $3.19, forms a key near-term resistance zone. The market must reclaim this range for natural gas to strengthen towards higher prices.
Outlook and Potential Targets
Despite the current downward pressure, the article suggests that if a bullish reversal occurs from a sustained low, the upper end of the broadening formation could become a target, with an upside potential of $4.50, representing the 78.6% retracement of a prior large downswing. The analysis concludes with a note on the importance of monitoring these technical levels for future trading decisions.
Author Background
Bruce Powers, the author of the article, has over 20 years of experience in financial markets and is a seasoned finance MBA and CMT® charter holder. He has worked as head of trading strategy at hedge funds and as a corporate advisor for trading firms, providing actionable insights through both technical and fundamental analyses.