Natural gas price falls toward $3 as trendline breaks and bearish pressure intensifies
Natural gas price dips below $3.30 as bearish momentum grows, while UK contracts hit multi-week highs
Natural gas prices have resumed their downtrend, slipping to $3.20 amid increasing selling pressure. This marks a decisive breakdown below a key ascending trendline that had supported the rally from March through May.
Highlights
- U.S. natural gas slides to $3.20, eyes key support at $3.00–$2.85 after trendline breakdown
- UK gas futures jump past 83p/therm on heatwave forecasts and Centrica’s long-term Equinor deal
- Momentum indicators show bearish continuation unless price reclaims $3.30 resistance
Technical charts show that the failure to hold above the $3.60–$3.80 resistance area has triggered a broader structural shift, with the asset now targeting the major demand zone between $3 and $2.85. If that level fails to hold, the next potential support lies deeper near $2.60.
Downside pressure builds after rejection at key resistance
On the 4-hour chart, natural gas continues to trade below its 20, 50, and 100 EMAs, with all moving averages now sloping downward. The 20 EMA near $3.30 has flipped into resistance, further weighing on price.
NG price dynamics (Source: TradingView)
Bollinger Bands are expanding again, signaling renewed volatility in favor of sellers. Unless price rebounds sharply above $3.30, the prevailing momentum suggests continued downside. Short-term RSI remains below neutral, and MACD shows no strong signs of recovery, despite slight divergence in recent sessions.
Centrica signs long-term deal as UK futures climb
While U.S. futures trend lower, UK natural gas contracts surged past 83 pence per therm, the highest in over two weeks. This move came as traders priced in warmer weather forecasts and stable Norwegian gas flows. The rise was further underpinned by a £20 billion deal between Centrica and Equinor, securing 5 bcm per year of natural gas supply for the UK through 2035. Centrica CEO Chris O’Shea called it an investment in national energy security, noting that imports met two-thirds of UK demand in 2024.
In earlier updates, we flagged the failure to sustain above $3.50 as a warning for potential trend reversal. Price action since then has validated this call, with lower highs and a confirmed wedge breakdown. The $3 to $2.85 region is now critical. A break below this zone would align with our earlier bearish expectations and expose natural gas to deeper downside levels near $2.60 and $2.30.
