Natural Gas Prices Face Resistance, Slide Ahead of Bearish EIA Report

Natural gas is consolidating near trend highs and testing resistance at 3.64. A decisive upside breakout above this level could lead to higher prices, with the next potential resistance zone at 3.78 to 3.86. However, if there is little upside follow-through, a further correction and downside movement may occur. Support levels to watch include 3.43, 3.32, and the significant support zone at 3.18 to 3.165. A monthly breakout above last week's high would confirm long-term strength, and a breakout of the rising parallel trend channel could push natural gas to test higher price levels.