Natural Gas Tests $2.84 Support After 15% Weekly Selloff

Natural gas touched $2.85 on Monday, the lowest intraday level since April, extending a decline that has erased 15% from last Wednesday's peak of $3.36. The move puts the front-month contract at a technical decision point.

The $2.86–$2.84 zone combines the 61.8% Fibonacci retracement of the April-to-May rally and a swing low from early May. Traders said a close below $2.84 would confirm the breakdown from last week's rising channel and open a path toward the April low near $2.50. A hold, by contrast, could trigger short-covering. “The speed of this selloff has some traders watching for profit-taking,” one futures broker said.

Monday's session printed a lower high of $2.95 and a lower low of $2.85, extending the sequence of lower swing highs and lower swing lows that has defined the market since the January peak near $7.44. Last week's break below the uptrend line from the 2024 lows, the 20-day moving average, and the 50-day moving average all added to the bearish technical picture. The 50-day average now sits above price for the first time since February.