Natural Gas Price Bounce Could Be Coming as Bearish Trend Softens

Natural Gas Prices May Be Due for a Bounce

The price of natural gas has been trending downward, but recent developments may indicate that the bearish trend is softening. Since breaking above the downtrend line on Monday, the angle of descent for the short-term bearish trend that started five weeks ago may be decreasing.

This could mean that a decisive breakout above $2.81 could lead to higher prices while still maintaining the larger downtrend structure.

The next major test for natural gas prices will come in the form of resistance at $2.93, which is defined by the 100-day moving average. This level was previously tested as resistance during a tight nine-day consolidation range that followed a break below the 100-day moving average on July 10.

If the 100-day moving average can be reclaimed, the lower swing high of $2.99 becomes an upside target, but for now, $2.81 remains the key dividing line.