Natural Gas Breaks Above $2.985, Eyes New Support Area
Natural gas prices broke above a key resistance level near $2.985 on July 24, but have since pulled back to test this new support area around $2.925.
The Fibonacci retracement tool, drawn from the swing low of $2.821 to the swing high at $2.985, highlights where dip buyers may appear, with key levels at 38.2%, 50%, and 61.8%.
As the moving averages converge, a bullish crossover could reinforce the idea that the path of least resistance is shifting upwards, especially if prices hold above both indicators on this pullback.
The stochastic oscillator has fallen from overbought territory and is nearing the oversold region, while RSI has eased back from its highs to hover around the midpoint, suggesting a cooling off of overbought conditions without significant technical damage.