Natural Gas Price Plunges to $2.836 as Support Level Looms

Natural gas prices plummeted on Friday, erasing nearly a month's worth of consolidation gains in a single move. The commodity closed at $2.836, down from $2.950 earlier in the week, and is now knocking on the door of the psychologically significant $2.800 support level.

This drop marks the latest development in natural gas' ongoing correction after its steep selloff earlier in the month. Price broke down from the $3.250 swing high and shed more than $0.30 in just a few sessions, giving way to weeks of choppy trading between roughly $2.800 and $2.950.

The moving averages are still sloping downward but have started to flatten out and converge, while Fibonacci retracement levels suggest that price has already sliced through the 38.2% and 50% levels at $2.876 and $2.900, respectively.