Natural gas futures are trading around $3.734, approaching the upper boundary of a well-defined ascending channel. The price recently pulled back from the $3.825 resistance level, a critical barrier that has capped gains in recent sessions. This level represents a key psychological zone for traders, with a potential breakout setting the stage for a move toward $3.926, followed by the significant $4.020 resistance.
On the downside, immediate support lies at $3.722, aligning closely with the lower trendline of the ascending channel. A break below this level could expose natural gas to further downside toward the $3.626 support, followed by the 50-day EMA at $3.644, which acts as a critical support for the ongoing uptrend.
Natural gas is testing the upper boundary of its ascending channel, with a break above $3.825 potentially signaling a continuation toward $3.926. However, a pullback below $3.722 could risk a deeper correction, targeting the $3.626 area.
