Natural Gas futures put in a large reversal in Tuesday's trading session, gaining back recent losses after finding support at the bottom of a long term Falling Wedge chart pattern. Short-covering and speculative buying may result in a swift move higher as this market has been slipping into the lowest price levels seen so far this year.
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Falling Wedge support is now well established at yesterday's swing low of $3.775 per million BTU. The upper band of the wedge is also clearly illustrated and places resistance for the market to overcome at the $3.88 price level.

A continuation of Tuesday's rally would likely bring the nearby futures within striking distance of this potential breakout point. This should occur on strong momentum if there is follow-through potential to rise above the wedge, as the prolonged downtrend within the formation will strengthen the resistance to some degree. A failure to breach the top of the wedge would signal a renewal of the range-bound trade between $3.88 and $3.75 per million BTU as the pattern progresses.
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