Alex Borzak
⬤ Natural gas futures have entered a consolidation phase after a sharp rally earlier in January, with prices now stuck between structural gaps above and below current levels. Profits were taken on a long position that started near 3.50, with a hedge placed around 3.93 at market open. The chart shows price stalling after its strong rally and failing to push higher.
⬤ The market saw a powerful move from the 3.00 area toward a peak above 5.50 before pulling back significantly. Prices have since retraced toward key Fibonacci levels, bouncing near the 0.382 retracement around 4.64 and briefly testing lower zones. This hesitation after the vertical climb shows that momentum has cooled rather than continued.
⬤ Two weekend gaps remain below current prices, while a roll gap sits overhead, essentially trapping the market in a tight decision zone. Volume clusters around the mid-3.00 to low-4.00 range, showing this as an area of active trading and balance. With price bouncing near moving averages and between defined technical levels, neither buyers nor sellers have taken control.
⬤ This consolidation matters because the recent rally quickly changed sentiment and positioning. When price gets squeezed between multiple gaps, it typically signals indecision and a break in trend. Until one of these gaps gets filled, natural gas will likely stay range-bound, with short-term moves driven more by technical positioning than any clear directional trend.
Alex Borzak
