Natural Gas Price Breakout Test Looms at $2.89

Natural gas prices have been on a downward trend, and this bearish structure remains intact. According to the daily chart of natural gas futures, the price is below several key moving averages, including the 50-day, 100-day, and 200-day moving averages. A decisive breakout above $2.89 would be necessary to shift momentum in favor of a bullish reversal.

The recent lower swing high of $2.98 confirmed resistance at a trendline that was previously shown as support in July. If natural gas breaks through this level, it could trigger a test of key resistance and potentially set up a test of the 50-day moving average near $2.96. However, the declining trajectory of the moving average means that any upside from a bottom reversal will be limited.

The 50-day moving average has not been tested as resistance since natural gas fell below it on July 9. It's possible that it may be tested before the downtrend continues lower, potentially when the average reaches the top of the bottom consolidation range at $2.89 or nearby.