The summer 15 natural gas strip (May 15-October 15 contracts) remains in a bearish downtrend after breaking out to the downside from a triangle consolidation pattern in late-March.
A rally last week topped out at a 2.815 high, holding below former triangle trend line support as resistance. As resistance held, sellers came back in selling the strip back down to the current 2.630 level.
The downside measuring objective for the triangle pattern is for the summer 15 strip to trade down to the 2.400 level.
Triangles appear near the end of a price trend. Current weakness could be a long term low for the natural gas market.
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