Gas price continues to move lower and confirmed the breakout from the consolidation zone. Fundamentals factors remain negative and even signs of strong oversold conditions do not change investors' attitude.
Interestingly, seasonality charts from the last few decades indicate that in the second half of February and then in March price often hits local lows. This can be linked to the end of the heating season and then the stabilization of the terminal curve. However, at the moment one cannot rule out the possibility that price will test support around $2/MMBTU.
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The seasonality of the last 20 years indicates that a seasonal low may occur in mid-February. Source: EquityClock.com
Natgas finally broke out of the consolidation zone. If the price won't return above $2.35 tomorrow, one can expect a further downward move towards $2.00 by the end of this month. Source: xStation5
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