Natural gas prices rebounded from Monday's early 3 month prices lows but traded generally weaker. Focus remains on increasing U.S. storage rather than forecasts for continued heat into early-September.
The increased end of summer demand has kept the natural gas market in a sideways range for the past 3 months although early selling today dropped the market back toward the bottom end of this trading range.
Technically, the market broke out from a bearish triangle pattern last week which should lead to a retest of the 2.443 spot contract low set in May. If this low is broken as support, the 2.230-2.250 level will become the next longer term support for a possible seasonal low.
The winter 14-15 strip set a new all-time low today under the 2.950 level joining the summer 16 strip which fell to a new low late last week.
With the longer dated contract selling down to new lows, it is only a matter of time before the nearby dated contracts also trade down to new contract lows.
While timing is of question, patience should be rewarded in waiting for lower natural gas prices.
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