Buyers Eye Natural Gas Rally at $3.26

Natural gas prices have been on a rollercoaster ride in recent times. The daily chart of natural gas futures shows a larger trend structure, indicating that there may be more ups and downs ahead. If buyers can retain control and support holds, the recent high of $3.03 becomes an initial upside target.

Further upside targets extend towards $3.09, which is the 61.8% Fibonacci retracement of the prior decline. The falling 200-day moving average near $3.26 is also a key upside target, along with the 78.6% Fibonacci retracement at $3.21.

However, there's a catch - if the 200-day average continues to fall and doesn't get tested as resistance soon, it may eventually drop below the 78.6% level. On the downside, Thursday's low of $2.75 is now key short-term support, making it crucial for buyers to hold above this level.

The convergence of the 20-day and 50-day moving averages suggests a potential pickup in momentum once the next direction becomes clearer. This could indicate a higher swing low for the developing advance, if an upside breakout follows.