After an impressive run which saw the prices of natural gas shoot up over 40%, it seems that the rally has lost its steam. As shown in the chart below, natural gas hit resistance at the $3.75 price level and then drew back to its current levels of around $3.50.
From here, natural gas could retest the resistance at $3.75 or fall down to $3.35, its next support level. Also, MACD seems to be supporting the idea that the rally has lost its legs. Expect a breakout if natural gas crosses the trendline (shown in blue) and expect a retest of $3.10 support if prices break the support at $3.35.
