Natural Gas Prices Face Bearish Outlook Amid Production Gains and Mild Weather

Natural gas shows signs of a possible bullish reversal as the current day's trading range exceeds the prior day's high, indicating strength within a downtrend. The relative strength index (RSI) has reached an extreme overbought condition, suggesting a potential continuation to the upside. Yesterday's low completes a significant correction, setting the stage for a potential rally. To advance higher, natural gas needs to recapture the weekly high key of 2.49 and test prior support areas as resistance. The minimal target price for a rally is the 38.2% Fibonacci retracement at 2.77. The completion of an extended falling ABCD pattern at 2.22 acts as support, making a rally the most likely scenario for natural gas.