Natural gas prices have stabilized into a sideways trading pattern, settling close to the lower boundary of a minor bullish channel at approximately $2.720. This movement comes amidst a decline in stochastic indicators below the 50 level, suggesting a temporary setback for bullish momentum.
To regain bullish momentum, it is crucial for natural gas to maintain stability above its current support level. This would potentially pave the way for a rally towards key resistance levels at $3.000 and $3.180 in the near term. However, failure to sustain above the support line could expose natural gas to renewed selling pressure, possibly triggering a corrective bearish phase. In such a scenario, prices could retreat towards $2.620 and $2.480 before finding a new base for further upward movement.
The expected trading range for natural gas is anticipated to oscillate between the support level of $2.750 and the resistance level of $2.980. Traders and analysts are closely monitoring these levels for cues on the next directional move in the market.
This period of uncertainty reflects the delicate balance between bullish and bearish factors influencing natural gas prices, underscoring the importance of technical levels in guiding trading strategies in the current market environment.
