Natural Gas Price Forecast: Hammer Reversal Recaptures 10-Day – Targets $4.88

Wednesday’s Hammer Reversal

Natural gas triggered a classic bullish hammer reversal Wednesday spiking to a high of $4.81. This followed a sharp bounce off a $4.46 low—precisely the 38.2% Fibonacci retracement on Tuesday. At writing, price remains near session highs and on pace to close strong, decisively recovering both the 10-day average and the top trend channel line lost days earlier.

Support Test Significance

Tuesday’s low tested but held well above the 20-day moving average, yet the 38.2% level and hammer structure provided the true catalyst. Such aggressive buying off a key retracement, combined with immediate recapture of broken technical levels, underscores robust demand and buyer commitment.

Breakout Confirmation

A daily close above Tuesday’s $4.62 high validates today’s breakout and sharply raises odds for bulls to retain control. This sets up a direct challenge of the recent $4.88 swing high, with potential to trigger a higher swing high and bull-trend continuation.

Short-Term Buying Opportunity

The brief dip offered an ideal entry or add zone for traders anticipating $4.57 (today’s low), which will now hold as higher support. As long as that level contains selling, upside momentum should persist.

Key Levels Going Forward

The reclaimed 10-day average must now act as dynamic support; failure there would flash the first bearish warning. A decisive drop below $4.57 would erase the higher-low sequence and invite deeper retest—though one quick violation with swift recovery remains tolerable in a strong trend.

Upside Channel Target

The ascending top channel line—touched at the recent peak—remains the primary overhead objective. Sustained trade above $4.88 opens acceleration toward that measured line and potentially higher extensions.

Outlook

Wednesday’s hammer reversal from 38.2% support and recapture of the 10-day/channel line places buyers firmly back in charge. A close above $4.62 targets $4.88 quickly, with the channel top next. Defend $4.57–$4.46 to keep the bull case intact; only sustained trade below the 10-day average would shift near-term bias lower.

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