The rally gained traction after clearing $3.362, now acting as a pivot support level. The next key resistance is the minor top at $3.574; a break above this level would confirm further bullish control. Beyond that, traders are watching the 50% long-term retracement at $3.730, the 50-day moving average at $3.795, and the 200-day moving average near $3.800. These zones represent potential resistance, but a strong close above $3.574 could open the door for an accelerated move toward them.
How Much Downside Risk Remains in the Near Term?
On the downside, the $3.362 pivot serves as immediate support, followed by the key bottom at $3.149. Unless prices fall back below these levels, the technical bias remains tilted to the upside. However, any bearish weather revisions or LNG disruptions could quickly test these levels.
Market Forecast: Bullish Momentum Likely to Continue
With weather models trending hotter and LNG demand approaching seasonal highs, natural gas futures are positioned for further gains. The technical breakout above $3.362 reinforces a bullish short-term view, with a test of $3.730–$3.800 likely if $3.574 is breached. Traders should monitor midday weather model updates closely for confirmation or reversal signals.
More Information in our Economic Calendar.