Natural gas continues to struggle under the weight of its descending trend line, which has capped upside attempts since late March and remains intact on the short-term time frame. Price is currently hovering around $2.680, suggesting that sellers are still in control and a deeper correction could be in the cards.

The descending trend line has rejected multiple rally attempts, keeping the commodity well below the swing high at $2.767. If this resistance continues to hold, natural gas could accelerate to the downside, with the Fibonacci extension tool highlighting potential bearish targets along the way.

The 38.2% Fib extension is located at $2.632, which could offer a brief pit stop for sellers. A more sustained selloff, however, could drag price down to the 50% level at $2.591, then the 61.8% Fib at $2.549. Deeper losses could reach the 76.4% extension at $2.498 or even the full extension target at $2.415 if bearish momentum really picks up steam.

The 200 SMA (red) remains well above the 100 SMA (blue), confirming that the path of least resistance is still to the downside. Both indicators are trending lower and sitting overhead, reinforcing their role as dynamic resistance on any attempted recoveries.

Stochastic is pulling back sharply from the overbought region, suggesting that buying pressure is fading fast. The oscillator has plenty of room to slide before reaching the oversold area, leaving the door open for a more prolonged decline.

RSI is also turning lower from elevated levels without yet reaching oversold territory, echoing the stochastic signal and hinting that sellers still have room to push price further south before any meaningful bounce materializes.

Natural gas could carry on with its downtrend as demand for heating commodities has been fading while warmer weather conditions are setting in. Still, concerns about global supply due to Middle East tensions might limit losses or even spur a rally depending on the magnitude.