In a recent video update by analyst Bruce Powers, the retracement in natural gas continued today following a bearish reversal candle on Friday. Last week, natural gas reached a high of 3.64, prompting a correction. This trend high completed at a significant level - the 127.2% Fibonacci extension of the correction off the October 9 swing high, which coincides with a marked resistance zone.

As the retracement began on Friday, natural gas opened lower and has since reached a low of 3.32 at the time of writing. The current retracement completed a 38.2% Fibonacci level at 3.35, bringing natural gas closer to filling the gap from last Friday. This gap is expected to be filled, considering the speed at which natural gas is declining and the quick reversal experienced last Friday.

Of particular interest is the 200-Day Exponential Moving Average (EMA), which is expected to provide strong support for natural gas. The 200-Day line coincides with the 61.8% Fibonacci retracement at 3.35. Should natural gas approach this level, it would mark the second test of the 200-Day line as support since it was breached on October 6. The previous rally above it had failed, making this second attempt critical for a potential reversal in prices. However, failure to hold above the 200-Day EMA could jeopardize the bullish indication it represents. The next support zone lies around the 50-Day EMA at 2.94, which could come into play if natural gas breaks below its 200-Day EMA.

The attempted breakout above the rising trend channel, which has confined natural gas since its April low, proved unsuccessful last week. Although it briefly surpassed the channel, natural gas failed to close above it, leading to the current retracement. Alongside the moving averages, close attention should be paid to the internal uptrend line for possible support during periods of weakness. If natural gas manages to remain above this line during retracements, it could signal potential higher prices in the future.

As natural gas continues its retracement, analysts and traders will closely monitor key support levels, such as the 200-Day EMA and the internal uptrend line. The market's reaction to these levels will be instrumental in determining the direction of natural gas prices going forward.