Natural Gas Technical Analysis and Near-Term Outlook
Not a lot changed for natural gas today. The move down is hesitant to definitively take out $2.50. However, the waves and subwaves down from $3.06 still favor a continued decline to $2.40 and possibly $2.30. Taking out $2.50 will clear the way for $2.45 and then $2.40 during the next few days.
With that said, $2.50 is in line with the 50 percent retracement of the rise from $2.422 and held on a closing basis today. Also, today’s doji dampens near-term odds for a continued decline. Should natural gas overcome $2.56 early tomorrow look for a test of key near-term resistance at $2.61. Settling above $2.61 will call for a larger correction to challenge $2.67 before the decline continues as expected.
This is a brief analysis for the next day or so. Our weekly Natural Gas Commentary and daily updates are much more detailed and thorough energy price forecasts that cover key natural gas futures contracts, calendar spreads, the UNG ETF, and several electricity contracts. If you are interested in learning more, please sign up for a complimentary four-week trial.