Key Support Levels Define the Next Test
A higher swing low from May at $2.86 and the 61.8% Fibonacci retracement level mark the next target zone. Given the strong bearish momentum, as represented by the wide-range red-bodied candlestick pattern, a test of this support area may occur quickly. Further down is another higher swing low at $2.68, providing the next lower target. A failure of both levels would further reinforce the developing bearish structure.
Weekly Support Could Determine the Next Move
The weekly chart shows support being tested near the 20-week moving average, currently near $2.99. It was previously confirmed as support for three consecutive weeks during the initial pullback from the June peak. Since the weekly timeframe suggests this remains an important support area, a bounce could form to test prior support zones as resistance before potentially establishing new corrective lows.
Therefore, while short-term momentum remains bearish, the ability of natural gas to hold the 20-week moving average may determine whether a temporary rebound develops or whether the broader decline resumes.
Source: Original Article
