Natural gas prices are currently hovering around $2.936, held above $2.93 on the 5-hour chart. The market is caught between major support at $2.87 and resistance near $3.03. The price has recently rejected at $3.026, a level noted as part of a double top formation which is still half-complete.
Technical indicators suggest a weak trend with the ADX at 13.6. The MACD shows a bearish crossover, signaling fading bullish momentum, and the RSI indicates bearish divergence, suggesting recent highs lack conviction.
Key support levels are at $2.82 (200-period SMA and 50% Fibonacci retracement) and $2.87 (SuperTrend indicator and 38.2% Fibonacci retracement). Resistance levels are noted near $2.98–$3.03, including a supply zone and the double top formation.
For bearish traders, aggressive entry could be at $2.95 with a conservative entry at $2.87. The stop loss would be set at $3.03, with targets at $2.77, $2.70, and $2.62, offering a risk-reward ratio of up to 4.1. For bullish traders, aggressive entry could be at $2.93 with a conservative entry at $3.03. The stop loss would be set at $2.87, with targets at $3.14, $3.28, and $3.37, offering a risk-reward ratio of up to 7.3.
The no-trade zone is identified between $2.87 and $2.98, characterized by choppy action and high false-signal risk.
