Natural Gas Tests Neckline Resistance Amid Double Bottom Formation

Natural gas has formed a double bottom pattern on the daily time frame, with two comparable lows near $2.55-$2.60 in recent months preceding a recovery.

This reversal pattern suggests that sellers may be losing steam after the broader downtrend from highs above $5,000 earlier in the year.

The price is now working its way back up to test the neckline resistance around $3.00-$3.15, which aligns with a shaded consolidation zone that capped rallies for much of the summer.

A clean break above this ceiling could pave the way for a measured move rally, potentially targeting $3.70-$3.75 if bullish momentum carries through.