Natural Gas Price Forecast: Key Support Holds Near $2.87
Author: Bruce Powers
Published: February 19, 2026
Overview
The article discusses the current state of natural gas prices, highlighting a critical support level near the 78.6% Fibonacci retracement at $2.87. This level is significant as it coincides with a small double bottom pattern, suggesting a potential bullish reversal if certain conditions are met.
Key Points
- Support Level: Natural gas is currently holding support at the $2.87 level, which is crucial for a potential bullish reversal.
- Fibonacci Analysis: The price action has shown a rejection at the $4.08 swing high, aligning with the 61.8% Fibonacci retracement of a prior decline, indicating that Fibonacci levels are being respected.
- Recent Price Action: A bull hammer candle was observed, indicating a potential reversal, but confirmation requires a close above $2.96. A failure to do so could weaken the bullish signal.
- Broadening Formation: The article notes a large broadening formation in the weekly chart, which can lead to false breakout signals, necessitating caution among traders.
- Future Targets: For a sustainable bullish reversal, the price must reclaim the recent swing high of $3.19, followed by a more significant target at $3.45, which aligns with historical support and resistance levels.
Conclusion
The analysis suggests that while there are signs of potential support and a bullish reversal in natural gas prices, traders should remain cautious due to the broadening formation and the need for confirmation through price action. A drop below $2.87 would indicate a failure of the current support, shifting focus to lower support levels.
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. He provides actionable insights through both technical and fundamental analyses.