Natural Gas at Critical Support - Breakout or Breakdown?

Natural Gas Futures (4 HR Timeframe)


Analysis Overview:
Natural Gas is currently trading within a well-defined ascending channel, showing consistent higher highs and higher lows. However, the price is now testing the lower channel support around 323.8, which could determine the next directional move.

Ascending Channel:
The price has respected the channel boundaries, with the upper trendline acting as resistance and the lower trendline as support.
Currently, the price is hovering near the lower support zone, indicating a possible breakout or

A confirmed breakdown below 323 could lead to further downside momentum, targeting the 305 level, which aligns with a significant supply zone.
This would represent a potential 7.64% decline from current levels.

Supply Zone: Resistance expected around 330-335. Watch for rejection patterns in this zone.

Demand Zone: Support exists near 305-310, providing a potential buying opportunity if the price drops to this level.

Volume & Moving Average:
The price is below the 50-period moving average, indicating bearish momentum. Watch for price interaction with this dynamic resistance.

Key Levels:
Resistance: 330 (upper channel).
Support: 323 (channel support), 305 (key demand zone).

Trading Strategy:
Bearish Setup:
Entry: Below 323 after a confirmed breakdown.
Targets: 318 - 313 - 308
Stop Loss: Above 330

Conclusion:
Natural Gas is at a critical inflection point. Monitor price action closely for a breakout or breakdown. Use proper risk management and wait for confirmation before entering trades.

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