Natural Gas Price Cracks Key Trend Line, Faces Crucial Resistance
Natural Gas broke down sharply from its July swing high of $2.989, slicing through a rising trend line that had connected the month's lows and confirming a shift in short-term momentum.
The pair found footing near the $2.682 mark before staging a recovery, and is now testing the underside of a former support zone that could flip into resistance.
Fibonacci retracement levels drawn from the late-July high to the recent low highlight potential ceilings for the bounce, with key resistances at $2.799 (38.2%), $2.836 (50%), and $2.872 (61.8%); all close to or above the 100 SMA dynamic resistance.
The 100 SMA is below the 200 SMA, keeping the path of least resistance pointed to the downside, while stochastic and RSI readings suggest buyers may be running out of steam; a downturn from current levels could signal sellers are ready to step back in.