The natural gas market may be on the verge of setting a second and final seasonal low for 2014.
The spot September 14 contract last topped at a 4.874 high on June 16th and has been in a relentless downtrend until Monday July 28th when it bottomed at a 3.725 low.
The recent breakout above the 10 day moving average at 3.825 has been followed by a rally today above 3.890-3892 weekly high resistance.
A breakout tomorrow above previous lows from mid-July at 3.940 could be an indication a market reversal is in progress.
If resistance holds, the 3.725 July low will be primary support followed by the 3.582 contract low set in November 2013.
Once a final low is set on this current sell off, a seasonal rally back higher into the early months of 2015 should follow.
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