The winter 14-15 natural gas strip (November 14-March 15) has fallen to a new all-time low in today’s trade breaking under the previous low of 3.814 posted last November.
Last week’s downside breakout by the winter 14-15 strip from a 12 week sideways below 3.950 support has initiated a sideways rectangle pattern.
This pattern has a downside measuring objective for the winter strip to trade back to the 3.700 area at least before a bottom forms in the market.
Current weakness should be the final price break of 2014. Once a low does form, a rally back toward the early-2014 price highs near the 5.000 level is expected over upcoming months.
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