Natural Gas Prices Under Bearish Pressure Amid Falling Resistance

Natural gas prices are facing bearish pressure due to recent price action and technical indicators. On the daily chart, an expanding triangle pattern has formed, suggesting that any rally will face significant resistance. The upper range of this pattern is around $2.98, which recently confirmed as a high near the 20-day moving average at $2.97.

This average is falling and may continue to limit upside potential during any advance. Furthermore, the recent rejection at the 20-day moving average confirms building bearish momentum that could accelerate following this rejection.

The next downside target for natural gas prices is the 88.6% Fibonacci retracement at $2.74, followed by the recent trend low of $2.65. The bearish signs noted above put this low at risk of eventually being broken, unless natural gas shows a clear shift in its bearish character.