ABCD Pattern and Key Pivot Levels

While strength has been confirmed, natural gas now confronts a decision zone. The ABCD measured move symmetry between the rising AB and CD legs aligns with the 100% projected target at $3.34. This creates the possibility of a pivot and pullback, especially since a lower gap remains unfilled and the market has yet to revisit the 20-Day and 50-Day moving averages for support. These moving averages, converging near $3.00, represent important levels to watch if selling pressure emerges.

Path Toward 200-Day Average

A strong daily close above today’s high could open the door to higher levels. The next upside zone lies near the 200-Day moving average at $3.49, reinforced by the 127.2% ABCD projection at $3.50. The overlap of multiple indicators at this level strengthens its potential importance as resistance. Before that target is reached, however, natural gas must break decisively above a descending trendline, a move that would further confirm strengthening demand.

Outlook

The interaction with the long-term uptrend line has turned into a bullish signal. A sustained close above the 200-Day average would mark a significant shift in trend dynamics and encourage further bullish momentum. Until then, the $3.25 level serves as immediate support, while the $3.34–$3.35 area defines the near-term decision point for traders.

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