Natural Gas Holds Support, Eyes $2.93 Breakout for Reversal

A close above $2.93 would signal a weekly reversal and open the path toward $2.98, the next lower swing high. That area could be reinforced by the 20-day moving average, which is declining and may converge with that level by the time price reaches it. Above that, the 50-day moving average near $3.13 becomes the next target. That average had acted as support during the prior advance and would now serve as resistance.

The support zone held. Buyers stepped in near a confluence of technical indicators. The broadening pattern means a false breakout is possible. Traders will watch for a sustained move above $2.93 to confirm the bullish case.

The setup mirrors the positioning dynamics flagged in an earlier analysis of natural gas shorts. Natural Gas: 207K Shorts Face Heat Test as Front-Month Holds Support