Natural Gas Prices Eye $3.21 as Bullish Reversal Gains Momentum

Natural gas prices have shown a bullish reversal in recent days, breaking out of a larger trend structure. On Monday, the low was short-term support, but since the full range is above the $2.85 high, a pullback into Friday's range from $2.91 to $2.77 may still occur.

However, this shouldn't change the short-term bullish outlook unless Friday's low breaks to the downside. The fact that both Friday and Thursday fell below the lower rising channel line intraday but closed at or above the line is considered bullish behavior that has now been confirmed with Monday's breakout.

The moving averages have also aligned near Friday's high on the day of the breakout, adding significance to the potential for strength to resume towards higher prices. This confluence raises the stakes and adds importance to a failure of the bullish signal on a decline below $2.75.