Natural gas consolidates near $2.82 support; rally above $2.93 could reach $3.13. Breakdown below $2.80 risks $2.74, says analyst.
Alpha Score of 68 reflects moderate overall profile with strong momentum, strong value, weak quality, moderate sentiment.
Natural gas is consolidating near a support zone that includes a 78.6% Fibonacci retracement at $2.82 and a rising trendline from January. The low of the current decline is $2.80, and the pattern is a broadening formation with resistance at $2.93, according to Bruce, a CMT charter holder with over 20 years in financial markets.
A rally above $2.93 would face initial resistance at the 20-day moving average near $3.04, with a further target at the 50-day moving average around $3.13. That level carried added weight since it served as dynamic support during the prior advance, Bruce said.
On the downside, a break below $2.80 could expose the 88.6% Fibonacci retracement at $2.74, reinforced by a swing low from August 2025.
Since natural gas has only one leg down from the prior advance, a counter-trend rally remains possible before a continuation of the downtrend, Bruce said. The current correction could also end with more consolidation near the support zone.
Traders are watching the $2.80-$2.82 zone for direction. A hold could set up a move toward $3.13, while a breakdown would open the door to $2.74.
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