Natural gas is experiencing downward pressure and is likely to continue its bearish trend, with potential support levels around 2.03 to 1.95 and a possible pivot at 1.92. The market has fallen below key moving averages and support lines, indicating a strong bearish sentiment. Downward momentum may slow down as it approaches a new trend low, potentially leading to a bullish reversal, but a decisive drop below today’s low could signal further downside.
Traders are closely monitoring natural gas as it trades within a potential support zone defined by the uptrend line, the 78.6% retracement, and the prior swing low at 2.235. A decisive decline below 2.31 could signal further price drops, with potential support around the 2.235 level. However, the bearish trend remains intact, and a rally above 2.31 could indicate strength, potentially leading to a tradeable bounce. If prices weaken further, a test of trend lows around 1.97 to 1.94 is possible.
Natural gas experienced a bearish decline, breaking key support levels and heading towards the 78.6% Fibonacci retracement at 2.48. The bearish momentum was confirmed by a wide-range red candlestick pattern and a weekly bearish reversal, indicating further weakness. The next potential support is at 2.48, followed by a minor swing low around 2.41. While the current outlook for natural gas is bearish, a countertrend move is expected after reaching support levels, with volatility remaining a key factor in price movements.
Natural gas failed to hold support at the 50-Day MA and instead tested the 200-Day MA as support, completing a 61.8% Fibonacci retracement and nearing the target for an extended declining ABCD pattern. The weekly chart shows support at the 50-Week MA, indicating potential for the current correction to complete. The price action suggests a failed upside move, with the long-term trend indicator, the 200-Day MA, being closely watched for signs of strength. A successful test of the 200-Day MA as support could signal a bullish reversal, while a break below 2.65 may lead to increased uncertainty and a potential decline to the next Fibonacci level at 2.48.
Natural gas is showing strength as it holds steady and potentially closes at a new trend daily high, with eyes on a breakout above 3.23. Despite a recent pullback, it remains within Tuesday’s trading range and above the uptrend line, signaling potential for further gains. A breakout above 3.23 could face resistance at 3.34-3.39, with a primary higher target at 3.93, mirroring a previous advance. The 23.6% Fibonacci retracement will be hit at 3.85, indicating potential future price movements.
Natural gas retraced its gains after encountering resistance at the 78.6% Fibonacci retracement, with potential support at 2.96 and signs of a correction. Bullish reversal signals were confirmed on the monthly chart, and moving averages indicate an improving outlook, with attention on the 200-Day line at 2.64 as a key level to watch.
Natural gas experienced a breakout rally, surging to a 78.6% Fibonacci retracement and reaching a high of 3.39, indicating a potential shift in bearish trends. The bullish price action suggests a possible failure of the previous bearish flag breakdown, with a 49.8% increase in price over 17 days. However, signs of resistance at the current high may lead to a short-term pullback, possibly testing support levels at the 38.2% Fibonacci retracement and the 50-Day MA.
Natural gas exhibits bullish momentum, aiming for a price target of 3.04 as it signals a bullish trend continuation and surpasses the 50% retracement level at 2.94. The rally, reaching the average performance zone of past five rallies, indicates a potential completion as it approaches the resistance of the rising parallel trend channel. However, the current advancement has placed natural gas back above major moving averages, with the potential for further upside towards 3.15.
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.
Natural gas is experiencing a bearish retracement, with sellers in control and a potential continuation of the downtrend. The failure of the long-term downtrend line to hold as support further indicates a bearish outlook. The next target for natural gas is around $2.22, based on an extended falling ABCD pattern. The breakdown of a large bearish flag and the confirmation by moving averages add to the bearish sentiment, with the 1.95 trend low at risk of being tested as support.
Natural gas faces a steep decline, testing key levels as it falls to a new retracement low and completes a 78.6% Fibonacci retracement. The current bearish correction has exceeded all prior corrections since February 2023, indicating increasing selling pressure. The price respected support at the 78.6% retracement level, but a daily close above the prior swing low and today's high is needed for a clearer bullish signal. If sellers remain in control, natural gas may head towards the completion of a falling ABCD pattern and the 88.6% Fibonacci retracement.
Natural gas prices are facing bearish pressure as they weaken and breach key support levels, including the 200-Day EMA and the 61.8% retracement. The prices are expected to test lower support levels around 3.04, including the 50-Day EMA and the 78.6% Fibonacci retracement. However, if a bullish reversal occurs from these support levels, higher targets around 3.76 to 3.86 may be reached, including the completion of a rising ABCD pattern and the 23.6% Fibonacci retracement of the prior downtrend.
Natural gas has surged to a 36-week high, completing a 23.6% Fibonacci retracement and pushing towards the next target. However, it is entering overbought territory, signaling caution for bulls. While there are signs of strength, potential resistance and the need for a price correction are present. Support levels to watch include the 200-Day EMA and the long-term downtrend line. Higher targets are possible, but they also indicate a potential resistance area.
Natural gas is experiencing a bearish trend, with prices falling below key technical levels such as the 55-Day EMA and the 2.60 swing low. The next potential targets for a decline are the 78.6% Fibonacci retracement at 2.58 and the 88.6% retracement at 2.54. The weekly candlestick pattern suggests a possible failure of the recent upside breakout, while the monthly chart shows a tightening consolidation. If natural gas breaks out of this range, it could accelerate in the direction of the breakout, with a downside continuation being a likely resolution.
The recent market rally has sparked a debate on whether it is a "bull trap" or the start of a new "bull market." A bull trap refers to a false signal where a declining trend reverses after a convincing rally, trapping traders who acted on the buy signal. While the current rally has a different technical backdrop than in 2022, some still expect a return of the bear market. Technical analysis, such as Fibonacci retracement levels, can help identify potential support levels during a correction. A violation of key levels could confirm a bull trap, leading to a reduction in equity risk. Understanding market volatility and maintaining investment discipline is crucial in navigating uncertain waters.
