Natural Gas sits at $2.765, just above support, after a steep five-hour downtrend. A break of that zone points toward $2.616, but oversold signals suggest any bounce could be sharp and short-lived.
Natural Gas is locked in a severe five-hour downtrend, with the latest price at $2.765, just above critical support. If that zone breaks, a tumble toward $2.616 looks likely.
Oversold readings warn against fresh shorts
The five-hour chart shows bears in control, but the indicators caution against new short entries. The RSI stands at 19.69, a deeply oversold reading that rarely persists before a reaction.
Price is also hugging the 78.6% Fibonacci retracement, the last hope for bulls before open space down to the $2.616 macro low. Meanwhile, the latest candle is a bearish Marubozu, which confirms heavy selling pressure but also marks exhaustion risk.
Two scenarios around $2.765
The bearish setup targets $2.616, $2.500 and $2.421. An aggressive entry triggers on a close below $2.765, while a conservative one waits for a retest and rejection at $2.890, with a stop at $2.856 for both. However, an oversold snap-back rally off $2.765 or $2.616 could stop out bears fast.
The bullish case carries low confidence. Entries come at $2.765 or at $2.820 after a bullish five-hour close above the micro-range, with targets of $2.933, $3.003 and $3.121 and a stop at $2.678. The source calls it a dangerous knife-catch, because the trend is down and no divergence is yet in play to support a low.
The $2.767 to $2.890 zone offers no clear edge
The source labels the $2.767–$2.890 zone a "no-trade" zone, with neither clear support nor resistance. It also puts ATR at $0.059, so long wicks and sudden reversals will be common. A surge in buy volume on a bullish candle could signal bears covering and open the door to a brisk relief rally.
Source: Investing.com
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