The natural gas futures contract is currently facing a key resistance level at 2.849. A bullish breakout above this level would likely indicate that the broader uptrend from the 1.574 low on February 19th has resumed.
Upside Targets if Resistance Breaks
If natural gas can clear the 2.849 resistance, the next key target on the topside would be located at the psychological 3.000 level.A move above 3.000 would open the door for a potential rally toward a retest of the previous 3.160 high.
Key Support at 2.700
While the technical outlook remains constructive, traders will want to keep a close eye on the 2.700 area as initial support. A breakdown below this level could potentially see natural gas retrace back toward the next support in the 2.640 region.If the 2.640 support gives way, it would likely trigger a more substantial pullback toward the 2.546 previous low.
Upside Momentum Building
For now, the broader technical bias in natural gas remains tilted to the upside, with the potential for a continuation move toward the 3.000 and 3.160 targets if the 2.849 resistance is taken out.However, a rejection at 2.849 and a move below 2.700 would be a significant technical event, likely opening the door for a deeper pullback toward the 2.546 low.
Levels to Watch
The key levels to watch in natural gas are the 2.849 resistance, along with the 2.700, 2.640, and 2.546 support areas.
As long as the price remains above 2.700 support, the overall technical bias will remain tilted to the upside, with the potential for a continuation move toward the 3.000 and 3.160 levels if the 2.849 barrier is cleared.
However, a breakdown below 2.700 and 2.640 would likely signal a bearish reversal, with the potential for a deeper pullback toward the 2.546 low.
The direction of the next big move in natural gas will likely be determined by the price action around the key 2.849 resistance level. A breakout above this area would strengthen the technical outlook, while a rejection could see the bears regain control.