US natural gas prices (NATGAS) continue to pull back, dropping another 3% today. NATGAS dropped below June 17, 2024 low and reached the lowest level since June 6, 2024 - almost a 3-week low. US weather forecasts suggest that the heatwave US is facing right now, should be receding eastwards in the next 8-14 days. Probabilities of above-average temperatures are dropping, although their remain high and point to an over-50% chance in majority of a key Midwest region. However, there is a less than 50% chance of above-average temperatures on the West Coast in the next 8-14 days.
Taking a look at NATGAS chart at H1 interval, we can see that the price dropped below last week's and this week's lows in the $2.78 area and tested June 17 lows in the $2.75 area. Bears managed to push the price below those, printing a new 3-week low. Should bearish momentum continue and price continues to drop, the next short-term support zone to watch can be found in the $2.72 area, followed by $2.60 area. A point to note is that the aforementioned $2.78 area also marked the lower limit of the descending triangle pattern, with a textbook target of the downside breakout being $2.40 area. However, price would need to break below aforementioned $2.72 and $2.60 zones first.
Start investing today or test a free demo
Open account Try demo Download mobile app Download mobile app
Source: xStation5
This content has been created by XTB S.A. This service is provided by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, entered in the register of entrepreneurs of the National Court Register (Krajowy Rejestr Sądowy) conducted by District Court for the Capital City of Warsaw, XII Commercial Division of the National Court Register under KRS number 0000217580, REGON number 015803782 and Tax Identification Number (NIP) 527-24-43-955, with the fully paid up share capital in the amount of PLN 5.869.181,75. XTB S.A. conducts brokerage activities on the basis of the license granted by Polish Securities and Exchange Commission on 8th November 2005 No. DDM-M-4021-57-1/2005 and is supervised by Polish Supervision Authority.
