Natural gas is settling into a wide trading range as expected. Today, prices fell to challenge $1.86, the 62 percent retracement of the move up from $1.765. This is a potential stalling point but based on the waves down from $2.100 and $2.018 odds lean in favor of falling to $1.82. A test of resistance is expected before prices close below $1.82. Closing below $1.82 would clear the way for $1.69, which is near the bottom of the trading range for the June contract.
As prices fall toward $1.82 resistance at $1.92 is expected to hold and $1.96 is key. Settling above $1.96 will call for another attempt at $2.03, which then connects to $2.11 and higher. Without help from bullish external factors, it is doubtful that natural gas will overcome $2.03.
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