Natural Gas Breaks Out: New Highs in Sight, But Watch These Key Support and Resistance Levels

2026-01-04 15:08:32

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Natural gas just pulled off an impressive move—dipped below Friday’s low on Monday morning, then rebounded hard to hit a fresh trend high. This kind of price action screams bullish energy, and traders are definitely paying attention.

The real tell? If natural gas closes above last week’s high of 2.34, that’s another green light. Right now it’s trading near 2.38, and the momentum is still there. But here’s the thing: we’re entering choppy waters.

The Resistance Zone Everyone’s Watching

Natural gas has just stepped into a critical resistance zone that stretches from 2.37 up to around 2.46 (where the 200-Day MA sits). This isn’t just one price level to worry about—it’s a cluster of technical targets all stacked together. Think of it like multiple stop signs at the same intersection.

Here’s what’s pushing these levels:

The 2.37 mark comes from two different technical signals firing at the same spot. You’ve got a completed rising pattern (using the 161.8% Fibonacci extension) and a symmetrical consolidation breakout target all pointing to the same price. Double confirmation = higher odds of a reversal.

At 2.40, there’s a measured move based on percentage gains. The December 13 bounce was up 51.8% from its low. Fast forward to the current rally starting April 25—do the math, and a 51.8% move lands you right at 2.40. These kind of repeating patterns often act as natural resistance.

Why This Matters for Traders

When multiple support and resistance levels cluster this tightly, it creates what analysts call a “confluence zone.” In plain English: the market has more reasons to pause or reverse at these prices. It’s not guaranteed, but the weight of evidence is heavy.

Natural gas has strong demand behind it right now, which explains the bullish moves. But as it approaches this supply-heavy zone between 2.37 and 2.46, traders should tighten their watch. A break above 2.46 keeps the rally alive. A rejection could send it back down to retest support.

Either way, the next few trades will be crucial for determining the next leg of this move.

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