The natural gas market gained nearly 4% in last week’s trade settling near the upper end of the weekly range.
The weekly natural gas chart shows the sideways range the market has been in over the past few months now entering into an 11th week.
The spot November 14 contract is approaching a key resistance level at the 4.150-4.200 level. This resistance is a former trend line support that was broken in July.
A rally higher in late-August topped out at a 4.101 high holding below resistance. A breakout and close back over former trend line support is needed to turn the longer term trend back up. If this occurs, the second and final seasonal low for the market should be set.
Failure to rally above 4.150-4.200 resistance over the next few sessions could see another sell off back toward 11-week support at the 3.750-3.800 level later in the week.
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