# Navigating the Natural Gas Market: What’s Next for Prices below $3.64?
Welcome back to the Extreme Investor Network, where we delve deep into market trends and critical insights to help you make the most informed trading decisions. Today, we’re focusing on the natural gas market and the implications of price movements below the key level of $3.64.
## The Immediate Outlook: Weakness Below $3.64
As traders and investors keep a close eye on natural gas prices, a significant threshold has emerged. A drop beneath today’s low of $3.64 could signal further weakness, potentially testing lower support levels around the 20-Day and 50-Day Moving Averages (MAs), which are currently situated between $3.53 and $3.56. This is key, as the recent crossover of the 20-Day MA below the 50-Day MA often serves as a bearish indicator for future price movements.
Just two weeks ago, natural gas prices witnessed a bearish correction of $1.38, or 31.6%, dipping to a low of $2.99. However, since then, we’ve seen a noteworthy bounce back of $0.81—approximately 27%—to today’s high. Given this backdrop, it wouldn’t be surprising if we encounter a period of consolidation, or rest, before the market is poised to make another upward move.
## Identifying Lower Support Levels
For those actively trading or considering entry points in the natural gas market, it’s crucial to monitor additional price levels for potential support:
– **$3.39**: This prior interim swing high dating back to early January serves as a significant resistance-turned-support level. This price is also confirmed by the 50% Fibonacci retracement of the recent upward movement, placing it firmly on our radar.
– **$3.35**: This week’s low could act as the next level of support.
– **$3.30**: Marking the two-week low, this price could indicate where sellers might pause.
– **$3.03**: The 61.8% Fibonacci retracement level should also be closely watched, as it can provide insights into the strength of potential market rebounds.
What sets these levels apart is that multiple indicators are aligning around these price regions, implying a confluence of support that could be pivotal in shaping our trading strategies.
## The Long-Term Bull Trend: A Positive Outlook
Looking further out, the long-term picture for natural gas remains bullish, especially since bullish signals emerged during the last quarter of 2024. A breakout from a large symmetrical triangle pattern has helped reverse a long-term downtrend. This historic low of $1.52 is expected to be the launching pad for future upward momentum once the current corrective phase concludes.
Interestingly, the recent swing low following a peak of $4.37—nearly a two-year high—found solid support around the initial bull breakout area of $3.02. This bullish reaction suggests that this low could indeed be significant, and it may have established a higher swing high, reinforcing the overall uptrend.
## Stay Updated on Market Movements
To help you navigate the complexities of the stock market and make the most informed decisions, we recommend checking out our **economic calendar** for today’s events and announcements that could impact trading. Awareness of these factors is essential for effective market participation.
At Extreme Investor Network, we are dedicated to providing you with insights that not only inform but empower your trading journey. Stay vigilant, and happy investing!