The natural gas market is trading sharply lower in Monday’s early trade effectively negating all of last week’s .105 gains by the April 15 contract.
There have been three upside rally attempts, the latest being last week, over the past two months in the natural gas market. But all the rallies have quickly failed to be followed by a sell off back lower.
Key support to watch basis the spot April 15 contract is 2.567-2.575, weekly lows from August 2012 and January 2014. If this support area is broken, the lower-2.400 level will become the next longer term support.
Seasonally, the natural gas market tends to set a post-winter seasonal low during March or early-April. Current weakness in the market could be the final price break ahead of the summer cooling season.
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