Natural Gas Tests Fibonacci Levels Amid Consolidation

Natural gas prices have been consolidating in the $2.920 area after breaking down from its descending wedge pattern in early August. This breakdown led to a swing low near $2.623, but the commodity has since staged a corrective bounce that is testing key Fibonacci retracement levels.

The 38.2% Fib at $2.888 has already been reclaimed, while the 50% level at $2.970 remains above current price and could serve as a hurdle for buyers. If sellers regroup here, natural gas could resume its slide back toward the $2.623 swing low or even lower.

The larger rebound scenario would require a convincing shift in momentum, potentially pushing prices up to the 61.8% Fib near $3.052. However, this is seen as less likely given the current market conditions.