Because the 200-day average is falling, it may drift closer to the Fibonacci level and form a shared upper target zone between those two marks.
Even if price first stalls near the 200-day moving average, an eventual reclaim of that line is still required before the long-term outlook can start to change.
For now, natural gas remains under pressure while it trades below that long-term average.
Either the bounce holds above support, or natural gas stays trapped under the larger downtrend.
If you’d like to know more about how to trade natural gas, please visit our educational area.
First Caps on the Rebound
For now, the upside looks limited to the 200-day moving average, currently near $3.31, or the 78.6% Fibonacci retracement of the prior decline at $3.20. Because the 200-day average is falling, it may drift closer to the Fibonacci level and form a shared upper target zone between those two marks.
A decisive rally above $2.95 would open the door to clearing the 50-day and 100-day moving averages and put a recovery above the $2.99 swing high in force. Next upside targets would then be the 61.8% Fibonacci retracement at $3.07, which sits close to a measured-move objective from the bottom consolidation near $3.05.
Support Map Until 200-Day Breaks
Downside from here looks limited unless support fails at the 20-day moving average, currently near $2.78 and rising. A recent higher swing low at $2.70 remains the key structural support beneath that average. Even if price first stalls near the 200-day moving average, an eventual reclaim of that line is still required before the long-term outlook can start to change. For now, natural gas remains under pressure while it trades below that long-term average. Until that cap breaks, Tuesday’s squeeze between rising support and the $2.91-$2.99 resistance cluster still defines the near-term map. Either the bounce holds above support, or natural gas stays trapped under the larger downtrend.
If you’d like to know more about how to trade natural gas, please visit our educational area.
