Natural gas broke below the 20-week MA, confirming a bearish trend. Support tested at $2.86. Next downside targets: $2.69 and $2.50. Resistance at $3.02-$3.12.
Alpha Score of 68 reflects moderate overall profile with strong momentum, strong value, weak quality, moderate sentiment.
Natural gas prices broke below a key weekly moving average, confirming a bearish trend after the commodity tested support near $2.86 on Friday. The session low of $2.87 triggered an intraday bounce. The broader structure remained in sellers' control, analysts said.
The week is set to close with the lowest weekly settlement in seven weeks, extending the decline from January's peak of $7.44. The lower swing high at $3.40 reinforced the pattern of lower highs and lower lows, analysts said. Prior support from the 200-day moving average and a long-term trendline failed to hold during the recent advance, with both levels tested as resistance near $3.40 and then rejected.
Support at the 61.8% Fibonacci retracement of the prior upswing and the $2.86 swing low area held for now. Analysts said the next downside targets are the 78.6% Fibonacci level at $2.69 and the trend low near $2.50. A counter-trend rally would need to reclaim resistance between $3.02 and $3.12 to change the bearish setup. The 50-day moving average at $3.07 and the prior swing low at $3.02 are the first overhead hurdles.
The weekly close below the 20-week moving average, which had supported prices for five consecutive weeks, validated the bearish shift, analysts said.
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