Natural Gas Price Forecast Summary

Author: Bruce Powers

Published: January 8, 2026

Market Overview

The natural gas market experienced a significant reversal, with prices declining sharply after a brief attempt to break above the 200-day moving average. The trading session saw early strength, reaching a four-day high of $3.63, but this was quickly undermined as sellers took control, leading to a breakdown below the previous day's low of $3.42. This movement has resulted in a bearish outside day, indicating renewed downside risks for natural gas prices.

Key Technical Indicators

• 200-Day Average: The price was rejected from the 200-day average at $3.56, confirming bearish sentiment as previous support has turned into resistance.
• Current Price: As of the latest trading, natural gas is hovering around $3.37, marking a potential lowest closing price for the current bearish correction.
• Support Levels: The next critical support level is at $3.32, with further targets around $3.27 to $3.24, which align with Fibonacci retracement levels and projected targets from a falling ABCD pattern.

Market Sentiment

The failure to maintain upward momentum after the breakout attempts suggests that sellers are firmly in control. The bearish reaction following the rejection at the 200-day average indicates that further downside pressure is likely, with the potential to test lower support levels before the correction concludes.

Outlook

In summary, the current market dynamics point towards continued bearish pressure on natural gas prices unless a significant reversal occurs. A failure to reach new corrective lows, coupled with a breakout above the recent high, could signal a potential counter-trend rally. Traders should remain vigilant for these key levels as the market develops.

Conclusion

The natural gas market is currently facing significant downward pressure, with technical indicators suggesting further declines unless a reversal is triggered. Traders should monitor the key support levels and be prepared for potential volatility in the coming sessions.