Natural Gas Reversal Faces $3.12 Resistance Test

Natural gas triggered a short-term bullish reversal on Wednesday, breaking above Tuesday's range to hit $2.94. The move followed a test of support near the $2.85 low, where Monday's swing low at $2.86 converged with the 61.8% Fibonacci retracement of the prior advance at $2.84. A daily close above $2.93 would confirm the breakout.

The counter-trend rally now faces a resistance cluster that will determine whether the broader downtrend resumes. The first overhead level is the prior swing low at $3.02, followed by the 50-day moving average near $3.09. The key zone begins at $3.12, where an interim swing low coincides with the falling 20-day moving average at $3.16 and last Thursday's high of $3.24. Both moving averages are converging toward the $3.12 area, which would establish a more significant resistance zone and increase the odds of a bearish continuation.