Natural Gas Prices Converge at Key Resistance Zone

Natural gas prices have been in a downtrend and are currently trading within a consolidation range. The significance of Wednesday's high is increased since two trendlines have converged, testing resistance at the same time. This convergence zone has rejected natural gas prices, keeping sellers in control.

The current bearish bias remains in place until the 50-day moving average is reclaimed. To trigger a bullish reversal signal, prices need to break above $2.89, which would confirm a switch from support to resistance. In the meantime, a move below the bottom of the range at $2.67 could lead to a continuation of the bearish trend.

Upside targets remain overhead, with an initial target around the 50-day moving average near $2.97 and a lower swing high near $2.98. However, further signs of strength would be needed to show sustained bullish momentum.