Natural Gas Holds Support at $2.66 as Oil Reverses After EIA Draw

Natural gas traded at $2.70, trying to recover from support at $2.66. A bullish trendline has formed on the retracement, but the price remains below both the 50-day EMA at $2.78 and the 100-day EMA at $2.86. The RSI has climbed from oversold territory to about 40, still below the neutral 50 line.

The next resistance sits at $2.74, then $2.81. Above those, a major supply zone around $2.87 is expected to cap rallies. On the downside, a break below $2.66 would open the door to $2.60. The report described any bounce below the moving averages as a correction, not a bullish reversal.

WTI crude broke below its ascending trendline and the $78.40 support level, confirming a bearish market structure. Prices are well below the 50-EMA at $81.21 and the 100-EMA at $81.46. The RSI at 34 is not yet oversold, so the report sees no reversal signal. A move back above $78.40 would relieve selling pressure, but a sustained break above $82.30 would be needed to confirm a bullish reversal.

Below $75.10, support is seen at $74.00 and $70.70. The broken trendline and the $78.40 pivot are now resistance. As long as WTI stays below those levels, the bias remains bearish and rallies are likely to attract sellers.

Brent crude fell through the $80.56 support and its trendline, reaching $78.90. The 50-EMA and 100-EMA at $85.26 and $85.47 confirm a medium-term bearish trend. Support is forming around $77.00 and $73.98. The first resistance after the breakdown is $80.56; a full recovery would require a close above $85.58. The RSI has dropped to 35, showing strong downside momentum but approaching oversold conditions. Buyers have not reclaimed the former support zone above $80.56, leaving Brent technically weak.