Natural Gas Forecast: Pullback Deepens as Key Support Fails

Recovery Gives Way to Corrective Action

Given the potential for further downside, short-term signs of strength are anticipated to be met with resistance and further downside pressure. Last week’s high suggests that the recovery from the August bottom may have completed and the market needs to digest gains and move into a period of consolidation.

Weekly Range Frames Next Phase

Evidence of a potential transition to consolidation can be seen on the weekly chart. Last week established a wide range from $2.817 to $3.317, as volatility expanded during the advance. Subsequent trading within that range would show consolidation on that higher timeframe. This supports the possibility that natural gas may still be early in its next bearish correction.