Natural Gas Prices at Risk as Bearish Trend Structure Takes Hold

Natural gas prices have been trending downwards since January's swing high near $4.09, and the current bearish structure is putting the $2.58 level at risk.

A decline below the April low of $2.65 would signal a continuation of this trend, while a break below $2.58 would trigger a broader bearish movement from the December peak of $5.02.

The recent lower swing high at $3.42 marked the first notable pullback to test the 200-day moving average and rising trendline, which had previously served as support for the advance that began from the 2024 low.

Tuesday's short-term bearish price action has further confirmed the possibility of a decisive decline below $2.58, putting natural gas on track to test support near the 78.6% Fibonacci retracement of the entire prior advance.