Natural Gas Price Forecast: Bull Pennant Faces Critical Retest

Author: Bruce Powers

Published: May 21, 2026

Overview

The article discusses the recent performance of natural gas prices, which have experienced a pullback after a breakout from a bull pennant formation. The price reached a low of $3.12 during the session, following an initial breakout that peaked at $3.31. This movement indicates a typical post-breakout retest behavior, where the market reassesses momentum.

Key Points

• Post-Breakout Behavior: After the breakout on Monday, natural gas prices hit a high of $3.31 before sellers regained control, leading to a bearish reversal.
• Support Levels: The current support is near the convergence of the 100-day and 50-day moving averages, around $3.05. This support level is crucial for the continuation of the bullish trend.
• Potential for Further Upside: Despite the recent pullback, the article suggests that the bullish implications of the pennant pattern remain intact unless prices fall below the lower boundary line.
• Resistance Levels: The article identifies potential resistance around $3.43, near the 200-day moving average, and the long-term uptrend line at $3.49.
• Weekly Close Risks: There is a concern regarding a potential bearish shooting star candlestick pattern forming, which could signal a reversal if strength does not return before the week's close.

Conclusion

The article emphasizes the importance of the upcoming price action in natural gas, particularly the ability to hold above key support levels. Traders are advised to monitor these levels closely as they could indicate the future direction of prices.

About the Author

Bruce Powers is a seasoned finance professional with over 20 years of experience in financial markets. He holds an MBA and is a CMT® charter holder, having worked as head of trading strategy at hedge funds and as a corporate advisor for trading firms.