Natural Gas Forms Double Bottom Pattern as Breakout Looms

Natural gas (NATGAS/USD) is forming a double bottom chart pattern on the daily time frame, with both troughs finding support in the $2.650 region before buyers stepped back in.

Price has since climbed back toward the pattern's neckline resistance near $2.850, an area also defined by a shorter-term ascending trend line connecting the swing lows since early August.

A decisive close above this neckline could confirm the reversal pattern and pave the way for a measured move rally, projecting a rise roughly equal to the formation's height to the $3.050-$3.100 area.

This zone coincides with the 200 SMA dynamic resistance and is not far from the swing highs traded in late June and early July.