Natural Gas Corner - A Look At The Weekly Chart

The weekly natural gas chart shows the increasingly narrow trading range the market has been in since the late-April 2.443 low.

Over the past 8 weeks, the trading range has become even more narrow as the market coils in a sideways range.  Over the next few weeks of trade,  possibly this week, a breakout from this sideways range is expected.

Consolidation patterns such as the one the natural gas market has been trading in for nearly 3-months historically have a 75% chance of being a continuation pattern rather than a 25% chance of being a reversal pattern.

In the present case of natural gas, the continuation pattern would be toward new price lows for this current downtrend. 

Key support remains the 2.443 and 2.556 weekly lows set earlier this year.  A drop under weekly low support would turn 2.230-2.250 into the next longer term support level.

A breakout above the 3.039-3.105 weekly highs is needed to turn the longer term market trend back up.