Natural gas is trading at $2.77, pressing into $2.820 resistance for the fourth time after three earlier failed attempts. Bullish momentum signals are building even as the broader trend stays bearish, leaving the market at a technical crossroads.
Natural gas is trading at $2.77 on the 5-hour chart, pushing into resistance level at $2.820 for the fourth time. Bulls have failed to break that level three times before, and the outcome of this attempt is pivotal: a breakout could open the door to a bigger rally, while another rejection would confirm the longer downtrend.
Momentum Builds Into Resistance
Price sits between firm support near $2.720 and resistance at $2.820. The MACD has turned bullish at 0.0166 versus 0.0073, and price now trades above both the 20- and 50-period simple moving averages after a bullish engulfing candle. Yet the broader trend remains bearish: price still sits well below the 200-period SMA at $2.993, and the volume profile shows strong supply stacked right at the resistance zone.
Bull Trap Risk Stays Live
Because past attempts at $2.820 have already failed three times, a close just above the level could quickly reverse and punish aggressive buyers. A double bottom pattern is 80% complete, which keeps bulls hopeful, but the $2.675 SuperTrend level marks the line that invalidates the bull case if broken.
Trade Setups Split at $2.820
Aggressive bulls are watching for a 5-hour close above the Ichimoku Cloud at $2.770, with targets at $2.900, $2.990 and $3.100 and a stop at $2.710. Conservative bulls wait for confirmation above $2.820 itself before entering, using the same targets and stop. Bears, by contrast, look for a reversal near $2.800 or a close below the moving averages at $2.710, targeting $2.680, $2.616 and $2.550 with a stop at $2.850.
Average volatility stays contained at 1.42% per 5-hour bar, but momentum is climbing, and a decisive move on either side of $2.820 would likely accelerate quickly given how much volume has piled up at that level.
Source: Investing.com
Trading involves risk.
Risk Disclaimer
