Natural Gas Price Forecast: Key Support Test After Bearish Outside Day
Author: Bruce Powers
Published: May 20, 2026
Overview
The article discusses the recent price action of natural gas, highlighting a bearish outside day that occurred after a Fibonacci retracement high. This shift in market dynamics has led to a focus on key support levels and the strength of recent breakout structures.
Key Points
- Fibonacci Analysis: Natural gas prices reached a high of $3.31, completing a 78.6% Fibonacci retracement before sellers took control, leading to a decline below the previous day's low of $3.17.
- Bearish Signal: The formation of an outside day is considered bearish, indicating a potential weak close for the session.
- Resistance Levels: The initial upward movement faced resistance near the 61.8% Fibonacci retracement and the 100-day moving average.
Market Dynamics
The article emphasizes that the recent pullback may test support levels near prior resistance, specifically around $3.18 and the 100-day moving average at approximately $3.06. A drop to the 100-day line could signal weakness and lead to further downward pressure, potentially undermining the bullish pennant breakout observed earlier in the week.
Future Outlook
Despite the recent pullback, there are indications that a bullish continuation could occur if the market can hold above key support levels. The article notes that the breakout from a falling wedge pattern in April has led to a reclaim of significant moving averages, suggesting that higher targets remain in play.
Key long-term resistance is identified at the 200-day moving average, with additional upside targets at the 61.8% Fibonacci retracement level of $3.52. However, the overall bearish sentiment persists even if these targets are reached.
Conclusion
The analysis provided by Bruce Powers offers insights into the current state of the natural gas market, emphasizing the importance of monitoring key support levels and the potential for future price movements based on technical indicators.