Natural Gas Price Forecast Summary

In the latest analysis of natural gas prices, the market is currently facing downward pressure after a recent rejection at the 200-Day Moving Average (MA). The price of natural gas rallied to a three-day high of $3.42 but encountered resistance at the 200-Day MA, which is currently positioned at $3.43. Following this resistance, sellers took control, driving the price down to a low of $3.92.

Current Market Dynamics

The analysis indicates that natural gas remains vulnerable to further declines, with potential targets set around the $2.76 to $2.80 range. This target zone is supported by several technical indicators, including a 78.6% Fibonacci retracement level at $2.80 and a projected target from a falling ABCD pattern at $2.76. The current bearish correction has already seen a significant decline of approximately 31.5% from the recent highs, suggesting that further downside is possible.

Resistance and Potential Reversal

Despite the bearish outlook, a decisive rally above the recent high of $3.47 could shift market sentiment from bearish to bullish. A confirmed breakout above this level would indicate a potential reversal, with subsequent resistance levels identified at $3.53 and $3.57. Traders are advised to monitor these levels closely as they could signal a change in market dynamics.

Conclusion

Overall, the natural gas market is at a critical juncture, with the potential for further declines if the current bearish trend continues. However, a breakout above key resistance levels could lead to a bullish reversal. Traders should remain vigilant and consider both technical indicators and market sentiment in their trading strategies.