Natural Gas (NG1!) is currently facing a critical resistance level as it approaches the 3.25 to 3.30 range. This zone holds significant importance, as it combines the September high with the daily 800 EMA, which has acted as a strong resistance throughout the summer months. The recent recovery from August lows has seen bullish momentum strengthen, but a bearish reversal signal has yet to appear.
Traders are closely monitoring the EIA Storage Report, which could serve as a potential catalyst for a price shift. The expectation is that a rejection from the current resistance region could trigger a bearish correction. The daily TDI has shown strengthening bullish momentum during the recent advance, but the absence of a reversal signal leaves room for caution.
The analysis suggests that a rejection from the 3.25 to 3.30 resistance area, accompanied by a bearish reversal signal, could confirm a bearish correction outlook. Traders are advised to watch for these signals carefully, as they could indicate a shift in the current trend.