Natural Gas Forecast: Bearish Flag Puts $2.70 at Risk
By Bruce Powers | Updated: Sep 09, 2026
Market Overview
Natural gas prices have recently fallen below $2.83, developing a bearish flag pattern that raises concerns about a potential decline towards the critical support level of $2.70. As of the latest update, natural gas is trading at $2.79950, reflecting a decrease of 3.40%.
Price Action and Technical Analysis
On Wednesday, natural gas prices dropped to an eight-day low of $2.80, breaching potential support at $2.83, which was previously defined by a higher swing low and the 20-day moving average. Initial signs of support were observed near an uptrend line that indicates dynamic support for the current short-term advance. If this support holds, it could prevent further declines.
Despite the failure of support at the 20-day moving average, the pullback to $2.80 is considered a minor level. The key support level below is $2.70, which is crucial for maintaining demand. A drop to this level would suggest weaker demand compared to a scenario where the 20-day moving average is reclaimed quickly.
Bearish Flag Formation
The recent price action has formed a small parallel channel, establishing resistance and a lower swing high at $3.03. This pattern resembles a bearish flag, with a confirmed resistance level established on Wednesday. A significant bearish signal would occur if prices drop below Wednesday's low, triggering a move below the lower boundary of the channel.
Potential Recovery
Alternatively, if support holds at the lower channel boundary, there is a possibility of a recovery. A reclaim above the 20-day moving average, currently at $2.87, along with additional signs of strength, could indicate a bullish reversal. The immediate short-term resistance is at Wednesday's high of $2.91.
Given that there has only been one upward leg since a bullish reversal two weeks ago, another upward movement could occur if key dynamic support is maintained.