Natural gas price rallies as technical breakout signals bullish momentum
Natural gas futures chart shows bullish momentum
Natural gas futures continue their upward trend, with prices currently trading around $3.615 per MMBtu, reflecting a 0.86% gain. Recent price action highlights a strong breakout above the resistance at $3.559, reinforcing bullish sentiment.
Analysts now anticipate the next upside target at $3.66, with potential momentum taking prices to $3.85 and beyond.
Natural gas price dynamics (Oct 2024 - Dec 2024) Source: TradingView.
Technical breakout fuels market optimism
The breakout above $3.559 marks a significant technical milestone, with immediate support now identified at $3.472. Further below, $3.097 serves as a crucial swing low and a key structural support level. On the upside, a sustained move above $3.66 could open the path toward the next resistance at $3.85, aligning with Fibonacci retracement targets.
Short-term resistance remains at $3.66, and surpassing this level would likely trigger momentum-driven gains toward $3.85 and $4.06. Conversely, if prices decline, a retest of support near $3.559 or $3.472 may occur, offering buying opportunities within the broader bullish framework.
European energy security remains uncertain
Meanwhile, European natural gas futures stabilized at €41 per megawatt-hour, reflecting uncertainty over Russian fuel supplies. Slovakia announced progress in securing a deal with Russia and Ukraine to maintain gas flows through next year. Major European utilities are also turning to alternative sources, including LNG imports from the UAE’s ADNOC, while the U.K. leverages record wind power generation to support continental electricity exports.
As technical indicators point to continued bullish momentum in natural gas markets, traders will closely monitor geopolitical developments in Europe and further price action in the coming weeks.
We previously analyzed BP and XRG's joint venture, Arcius Energy, which focuses on increasing Egypt's natural gas production. This initiative also highlighted technical patterns showing bullish potential, with resistance levels playing a pivotal role in price movements.
