FX.co ★ Honey Bee | Natural Gas (NG)

According to the daily chart of natural gas, the market which was in a long term consolidation is moved to a powerful bullish movement thus transforming the entire trend. Most of mid-2025 was characterized by relative price range in that prices were unable to remain above the upper Bollinger Bands on repeated occasions. The market was not very convinced whether on the buyers or sellers and it was during the period that the market developed shallow lower highs and slightly lower lows. This trading pattern established a foundational platform of significance since the support at the lower band was tested and received stable, though not violent, purchases. The turn of events was evident when price decisively soared above the mid-range resistance of the 4.805.00 zone. The breakout was accompanied by a rising volatility, the Bollinger Bands expanded, and began a new bullish leg. This move would give the first definite higher high and higher low sequence on the daily time frame structurally which is a sign of reversal of the trend rather than a mere correction. The following reversal back to the 4.30 to 4.40 region came acceptingly to the previous resistance cum support, which confirms the integrity of the new uptrend. The continuation phase was the next move towards the 5.40-5.50 area. Price admired the rising moving averages and applied it as dynamic support. This sector was a pivot point: it was a resisting point in the initial rally, a reaction point in the correction. The non-acceptance of this zone resulted in further downward movement, and price did not go into the former consolidation area, and this maintained the bullish formation. The early January correction cut a lower low at the 3.103.20 area. The level is structurally important as it is equal to the 100 percent retracement of the last swing and coincides with the lower expansion of the Bollinger Bands. The abrupt recovery in this region was a reversal and it indicated that demand was high and the selling pressure was exhausted. Under trend view, remaining above this mark stopped the downfall of the bullish trend and enabled the surge that came ahead. The step-up that ensued was sharp and almost vertical and forced the price through several resistance points with minimal consolidation. The upward move above 4.90 and subsequently 5.45 occurred very quickly and this is testimony to the fact that the preceding levels of supply had been taken up. This kind of behavior can be seen as a strong momentum and as well as a risk of overextension. Fibonacci retracement chart records that the price cut across the 50 percent and 38.2 percent levels without any hesitation, which highlights the strength of the move. Price is today close to the upper end of the recent range, and it is close to the estimated resistance close to the 7.207.30 region. Such a zone corresponds to the 0.00 Fibonacci projection and is the next significant upside projection in the trend. Since this speed of the rally indicates that this is a possible profit-taking zone, this area will be the most important area to monitor to identify actions of a continuation or short-term exhaustion. On the negative, the first significant support in the event of a pullback is the 6.056.10 area, which is 23.6 percent of the total length of the pullback. A slight pull back into this area would be technically normal and in line with a robust trending market. Under that is the 5.45-5.50, which coincides with the 38.2 per cent retracement and the former structural resistance. A reversal into this region would be a sign of further consolidation but would not in itself be, alone, invalidative of the larger bullish trend. The 4.85 to 4.90 area one side of the 50 per cent retracement is the most critical structurally of the support and resistance levels. Any prolonged decline beneath this would be indicative of a strong loss of momentum and may indicate the evolution of the market out of an impulsive trend phase to a larger corrective or range-bound phase. Yet, with price always above this point the series of highs and highs is not broken. All in all, the chart indicates that the market is firmly in the bullish mode with strong impulsive legs and quite shallow pullbacks. Although the present price might be elongated and prone to temporary adjustments, the structure is biased towards the extension, provided that the important support points are maintained. The areas between 6.05, 5.45 and 4.90 will be critical in the consideration of whether any backtracking is purely corrective or it is the onset of a bigger structural change.