Natural Gas Futures are currently displaying a classic ascending triangle formation on the daily chart, which typically signals a bullish continuation pattern. The price has been making higher lows, supported by a rising trendline, but faces steady resistance around the 326–328 zone. A clear breakout above 328 would validate this bullish pattern and could open the path to higher targets of 360 and 380.
Volume building during the formation phase contributes to the accumulation phase, enhancing the likelihood of a breakout.
According to the Climate Prediction Center (CPC), most of the continental U.S. is expected to experience above-average heat, especially across the western and central regions. This is expected to lead to a warmer-than-usual late June to early July, supporting strong natural gas demand due to increased cooling needs.
On the downside, the 310 level acts as key support, aligning with the rising trendline and recent swing lows. As long as this level holds, the bullish outlook remains intact. RSI is above 60, indicating positive momentum, and the price is also above key moving averages, reinforcing the bullish setup.
Traders are advised to watch for a breakout above 328 with strong volume to consider initiating long positions.
Support 2 | Support 1 | CMP | Resistance 1 | Resistance 2 |
---|---|---|---|---|
266.5 | 286 | 307.8 | 326.3 | 353.9 |
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