Natural Gas Price Forecast: Eyes $3.34 as Bulls Challenge Key Resistance

Natural Gas Tests Key Resistance Levels

Natural gas extended its rally on Monday, reaching a 48-day high of $3.30. Strength will be confirmed if the session ends above $3.25, the previous swing high that capped recent resistance. A daily close above that level would mark a significant technical development, as the long-term uptrend line—once dynamic support and later resistance—would be reclaimed. Overcoming this barrier could signal that buyers are regaining control of the trend.

ABCD Pattern Projects Near-Term Target

The market is approaching a critical technical zone. The first upside target lies near $3.34, representing the 100% measured move of a rising ABCD pattern. This level coincides with the intersection of a long-term uptrend line and a descending resistance line, creating a high-value pivot area. If price can sustain above these converging trendlines, it would confirm improving demand and add credibility to the bullish case.

200-Day Average as Major Hurdle

Beyond the $3.34 zone, the next potential resistance sits near the 200-Day moving average at $3.49, which aligns closely with the 127.2% extension of the ABCD pattern at $3.50. The convergence of multiple targets often increases the likelihood of price interaction at that zone. Importantly, natural gas has traded below its 200-Day average since July 21, underscoring the broader weakness in the trend. A test and eventual break above this level would mark a decisive shift in sentiment.

Bullish Reversal Potential Builds

As long as prices remain beneath the 200-Day average, downside risks remain intact. However, a rally and daily close above $3.20 already suggests a developing bullish reversal. A stronger confirmation would come from sustained trading above $3.34 and ultimately the 200-Day average. If achieved, natural gas could begin establishing a more durable uptrend. For now, traders will watch closely whether resistance holds or if momentum carries the market into higher territory.

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