Natural Gas Price Forecast: Tests Resistance Levels with Bullish Breakout Potential

Rally Above 3.02 Triggers Bull Breakout

Resistance was seen on Tuesday following the day’s high of 3.01. That was a failed attempt to break out above the most recent swing high of 3.02. A decisive rally above that high should provide a more reliable indicator for the triangle breakout. It will also signal a continuation of the rising trend that began from the August swing low as a higher swing high will be triggered.

The 3.02 high is also a monthly high for October. Therefore, a rise above it will also trigger a monthly upside breakout and result in a third month in a row of higher monthly highs and higher lows. Nonetheless, if natural gas can end the month above September’s closing price of 2.91 it will have reached its highest monthly closing price since October 2023.

Initial Upside Target at 3.22

Given the bullish recovery today following a pullback, it looks like natural gas may have completed a short correction and could attempt to advance above 3.02 shortly. If it can sustain a rally above that high, it next heads towards the 3.16 swing high from June. Then, a little higher, is an initial target from a small rising ABCD pattern (light blue) at 3.22. However, there is a confluence of price targets from 3.35 and 3.45, including the initial target from a rising ABCD pattern at 3.35 (purple) and a larger ABCD pattern marked in orange that targets 3.45.

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