Technical Analysis: Natural Gas Nears Major Support For Bounce

Following the formation of a bearish "topping tail" pattern on March 10th, 2025, which marked a peak price of $4.92, natural gas has entered a steep downtrend, falling approximately 36%.

Despite this downward momentum, technical analysis highlights an approaching major support zone. This potential support area is identified by:

• Converted Trendline Support: A trendline starting from June 2024 and connecting the highs of October 2024 initially acted as resistance. After being broken to the upside, this line demonstrated its validity as support during tests in December 2024 and January 2025. It is currently projected around the $2.90 level.
• Gap Support: A historical price gap exists down to $2.78. Such gaps frequently function as significant support levels when retested by price.

Combining these factors, the price range between $2.77 and $2.90 emerges as a critical zone to watch. With the price last noted at $3.15, technical strategists are anticipating a possible pullback into this support zone as a potential area to establish long positions. The prevailing bias is currently neutral, but a successful defense of the $2.77-$2.90 zone could shift sentiment towards a strong buy signal.