Natural gas prices have maintained support near their 200-day moving average, marking the fourth consecutive day of holding this level. Despite ongoing consolidation, this support suggests underlying strength in the market. The price established a four-day low of $3.092 on Monday, with a lower daily high of $3.204. The near-term support zone is defined by this low and the 200-day moving average near $3.10, reinforced by the 50% retracement of the prior advance at $3.105.
A decisive breakout above Monday’s high of $3.204 could signal a resumption of the short-term advance, with the potential to test resistance near the recent high of $3.298. If this level is broken, higher targets, including $3.41, become possible. Otherwise, further testing of support is likely.
The rising 20-day moving average near $3.05 could play a crucial role in defining near-term dynamic support, having been tested two weeks ago. As this moving average rises toward the price, currently near Monday’s low of $3.092, momentum could return to natural gas. Additionally, if the shorter-term moving average crosses above the longer-term 200-day average, it will signal improving short-term momentum.
The weekly chart supports the potential for an eventual resolution to the upside above $3.298. Last week, a bullish continuation signal was confirmed by a weekly close above the prior week’s high of $3.18. This resulted in a higher weekly low and higher high, suggesting that the weekly bullish trend is continuing. The September high of $3.317 and June high of $3.396 define a range of potential resistance, with a measured move pointing to $3.41 as a potential upside target.