Natural Gas Reversal Targets 3.055 Support Zone

Natural gas reversed from a resistance cluster that has capped price action since March, setting up a test of the 3.055 support level that marked the low of the prior minor impulse wave.

The reversal zone combined three technical layers: the 3.34 resistance level that has turned price lower repeatedly since March, the 38.2% Fibonacci retracement of the downtrend from January, and the upper daily Bollinger Band. The cluster produced a daily Evening Star candlestick pattern, a reversal formation that gains weight when it appears at a well-defined resistance area.

The daily trend remains firmly bearish. The January-to-June impulse wave has not been broken, and the bounce that reached 3.34 was a corrective move within that larger downtrend. A break below 3.055 would confirm the resumption of the dominant direction and open the next leg lower. Until that level gives way, the structure is a continuation pattern within the existing bear channel.

The simple read is that resistance held and the selloff resumes. The better read accounts for the fact that the 3.34 level has now rejected price three times since March. Each rejection strengthens its significance as a structural pivot. A trader watching this setup would look for a close below 3.055 on increased volume or a bearish follow-through session to confirm the Evening Star signal. A failure to break 3.055 would suggest the corrective bounce is still unfolding, potentially forming a base that could challenge 3.34 again.

Confirming factors

• A daily close below 3.055 with expanding range.
• The Evening Star pattern completes with a third bearish candle that gaps or closes below the first candle's midpoint.

Invalidating factors

• Price holds above 3.055 for three consecutive sessions, suggesting the corrective phase is extending.
• A break above 3.34 would negate the reversal setup and shift the short-term bias neutral.

The next scheduled data point is the weekly storage report, which can shift near-term supply expectations. A larger-than-expected build would reinforce the bearish case; a draw or smaller build would give the bulls a temporary edge. The structural setup, however, is driven by the daily chart levels, not the weekly storage number. The 3.055 support is the line that determines whether the reversal has follow-through or stalls.