Natural Gas Technical Analysis and Near-Term Outlook
Natural gas briefly rose above the $2.88 target but stalled at $2.887. The subsequent move down has taken out Tuesday’s midpoint and is poised to challenge $2.77. This is the 62 percent retracement of the rise from $2.697. Closing below $2.77 will strongly imply that the corrective move up from $2.697 is complete. Settling below $2.72 will confirm this and clear the way for the next major target at $2.68.
Nevertheless, should natural gas rally above $2.86 early tomorrow look for another attempt at $2.92. This level is still expected to hold. Closing above $2.92 will shift near-term odds in favor of challenging $2.99 and possibly $3.04 again.
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.