Breakout in Natural Gas Prices Sets Stage for Move Toward $2.99

Natural gas prices have been on the move after reaching an extreme Fibonacci retracement zone. This zone marks an 88.6% retracement of a prior advance, suggesting that a recovery is possible.

Following a sharp bullish reversal on Monday, natural gas tested resistance near $2.81 and Wednesday's high of $2.83 was reached. The resilience of the rebound suggests another wave of buying could push through these levels and potentially open the door to higher targets.

A drop below $2.74 could lead to a deeper pullback, testing support near Monday's low of $2.70 or Friday's high of $2.69. This would maintain downward pressure and keep the downtrend structure intact.

If natural gas can break above Wednesday's high, a decisive breakout could set the stage for a move toward $2.99, supported by the 50% retracement of the prior decline at $2.98. However, resistance near the 100-day moving average at $2.92 may emerge on the way.