Natural Gas Price Forecast: Compression Builds Toward Key Breakout Levels
By Bruce Powers | Updated: June 25, 2026
Market Overview
Natural gas prices are currently forming a broadening wedge pattern, indicating a period of consolidation as traders await confirmation of a breakout above resistance or a breakdown below support levels. The price recently reached a three-day high of $3.35 before facing resistance and pulling back.
Technical Analysis
Pattern Formation
The ascending broadening wedge pattern is characterized by higher highs and lower lows, suggesting increasing volatility. The recent pullback tested a descending trendline, reinforcing the notion of short-term range compression. A small symmetrical triangle is forming, indicating potential for a breakout.
Breakout Thresholds
The immediate bias remains bullish, with a critical resistance level at $3.38. A decisive move above this level would confirm a breakout from the smaller consolidation pattern within the broader wedge. Further resistance is anticipated between $3.42 and $3.49, based on previous swing highs.
Support and Moving Averages
If the price breaks below the lower boundary of the recent daily lows, the next target would be the lower boundary of the wedge, near the 50-day moving average at $3.09. The recent higher swing low at $3.06 also serves as a support level, indicating a potential for upward momentum.
Weekly Momentum and Resistance Levels
The weekly chart shows signs of strengthening momentum, with a bullish reversal triggered after a rally above the previous week's high. This resulted in a higher weekly low at $3.17 and a higher high at $3.38. The 20-week moving average has provided consistent support, reinforcing a bullish outlook.
Key resistance levels on the weekly chart include the 200-week moving average at $3.35 and the 50-week moving average at $3.42. These levels align with the daily chart's resistance objectives, making them critical points to monitor for future price action.