Natural Gas Price Forecast: Bearish Pressure Builds Below Key Resistance

Author: Bruce Powers
Published: July 24, 2026

Overview

The article discusses the current state of natural gas prices, highlighting a significant resistance level at $2.98. The market has shown bearish pressure, raising concerns about a potential decline below the critical support level of $2.80.

Resistance and Price Action

Natural gas prices recently reached an 11-day high of $2.98 but faced resistance at this level, which was previously a support zone in May. This resistance has now been confirmed, leading to a bearish reversal with prices dropping to $2.88. The repeated inability to maintain gains near $2.98 emphasizes the importance of this resistance zone for future price movements.

Moving Averages and Market Dynamics

The article notes that the falling 20-day moving average, currently at $2.99, is converging with the recent high of $2.98, indicating strong resistance in this area. The price action has demonstrated the unreliable signals often produced by broadening consolidation patterns, which can mislead traders into thinking a sustained trend is developing.

Bearish Continuation Likely

Despite a brief bullish reversal signal on the weekly chart, the lack of confirmation with a daily close above $2.93 suggests weakness in the market. If prices fall below the recent low of $2.81, it could lead to a further decline, potentially breaking the support at $2.80 and reinforcing the bearish outlook.

Key Levels to Watch

In summary, the key resistance levels are at $2.98 and the 20-day moving average at $2.99. A sustained move above these levels is necessary for a bullish outlook. Conversely, a decline below $2.80 would signal a continuation of the bearish trend, with the possibility of testing lower support levels.

Conclusion

The article provides a detailed analysis of the natural gas market, emphasizing the critical resistance and support levels that traders should monitor. The prevailing bearish sentiment suggests caution for those looking to enter long positions in the near term.