Natural Gas futures haven't been able to manage a rally despite trading into low price territory not seen since the early 2000's. The latest attempt at a move higher saw the market repelled neared the $2.80 per million BTU price level, falling back to form an orderly Channel Down chart pattern. The pattern is being tracked on Autochartist's hourly time frame under the emerging patterns heading.
This week's low of $2.45 coincides with a retest of the bottom side of the channel, giving the chart an upside bias from here as it aims for resistance near the $2.53 level. Traders will be watching the price action on a turn higher from these levels for signs of increased buying momentum. The expectation that an major cyclical low is imminent grows with each gradual bounce from the multi-year lows.
A breach of the resistance provided by the Channel would telegraph such a move is potentially forming, with a short term forecast generated by Autochartist on confirmation of the breakout. Alternatively, a resumption of the slide below the channel support near $2.40 would trigger a forecast for still further declines to ensue for this market. For further information on this and other Autochartist products, visit our website at www.autochartist.com