Downside Risk Scenarios
On the downside, price could continue to fall, while staying above support represented by the trendline, and remain within the wedge boundaries for a while longer. The second bearish scenario involves a decisive decline to a new trend low below $2.56, with natural gas then potentially heading lower towards the next potential support zone, from around $2.30 to $2.21, based on prior price structure from 2024.
Broader Trend Remains Bearish
Since the lower swing high of $3.49, natural gas has declined and established a series of four lower weekly highs, with the current week on track to mark the fifth consecutive week of that bearish pattern. That is a clear pattern on that longer timeframe, and a shift toward demand would be signaled by a decisive breakout above this week’s high, currently $2.72.
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