Natural Gas Price Outlook: Bullish Breakout Imminent
- Natural gas futures are showing bullish momentum, having broken out of a neutral symmetrical triangle above $3.50 on Monday.
- Despite lingering downside risks, including May's rebound from $2.83 being capped below the descending resistance line at $3.65 and the 38.2% Fibonacci retracement of the March-April decline, analysts...
- The Relative Strength Index (RSI) has risen above its neutral 50 level, and the Moving Average Convergence Divergence (MACD) has moved into positive territory for the first time...
Natural gas futures signal a potential bullish breakout! Technical analysis points to a possible surge,setting sights on a $3.65 target after breaking the neutral triangle. The Relative Strength Index (RSI) strengthens, and the Moving Average Convergence divergence (MACD) turns positive – a key factor in reinforcing bullish price action in natural gas. While caution is advised, a sustained move above $3.65 could pave the way to $3.90 and beyond, with resistance levels near $4.35 to watch. However, failing to conquer $3.65 may pull back the price to the $3.50 area. At News Directory 3, we deliver precise market insights. Are you ready to learn about the future natural gas market and the potential breakout? Discover what’s next …
Natural gas Futures Eye $3.65 Breakout After Bullish Signal
Natural gas futures are showing bullish momentum, having broken out of a neutral symmetrical triangle above $3.50 on Monday. Technical indicators suggest a potential continuation of this upward trend.
Despite lingering downside risks, including May’s rebound from $2.83 being capped below the descending resistance line at $3.65 and the 38.2% Fibonacci retracement of the March-April decline, analysts are watching key indicators.
The Relative Strength Index (RSI) has risen above its neutral 50 level, and the Moving Average Convergence Divergence (MACD) has moved into positive territory for the first time since March, reinforcing the current bullish price action in natural gas futures.
A sustained move above $3.65 could open the door to the 50% Fibonacci level at $3.90, with further gains potentially targeting the 61.8% Fibonacci mark at $4.16. Beyond that, resistance near $4.35, connecting the 2022 and 2025 highs, could come into play.
However, failure to break above $3.65 and remaining below the neckline of the February-March head and shoulders pattern could lead to a retest of the $3.50 area,potentially sliding toward the 23.6% Fibonacci level at $3.35. Short-term support at $3.28 and the 200-day Simple Moving Average (SMA) may offer a final defense before attention shifts to April’s lows.
What’s next
natural gas futures appear poised for another leg higher, contingent on a confirmed break above $3.65. Until then, a period of sideways consolidation may persist as the market assesses its next move.