Natural Gas Priced for Rebound as Channel Support Holds

Natural gas has been climbing steadily inside an ascending channel since mid-August. The price recently pulled back from a rising wedge formed near $2.940 to $2.970, dipping to test the channel floor and the confluence of the 100 SMA around $2.822.

According to the Fibonacci tool drawn from the recent swing, the 38.2% level at $2.914, followed by the 50% level at $2.942 and the 61.8% level at $2.970, line up closely with the wedge resistance.

If the channel bottom holds as a floor, natural gas could resume its climb and revisit the broken wedge resistance before pushing toward higher Fibonacci extension levels. The swing high extension at $3.062 is the next ceiling to watch.