US natural gas prices launched the new week with a strong downward move, with NATGAS trading almost 4% lower at press time. Forecast for a warmer weather in the United States in near future is pressuring natural gas prices as it hints at lower demand at the beginning of heating season. New forecast continue to point to above-average temperatures in the next 8-14days across the United States with much higher than average temperatures are now seen across much larger territory.
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Taking a look at NATGAS chart at H4 interval, we can see that price has been trading in a bearish channel since the end of October 2023. A recent upward correction push the price above 50-period moving average (green line) and led to the test of the upper limit of the channel in the $3.09 area. However, bulls failed to break above it and a quick reversal occurred. Price slumped back below the psychological $3.00 mark and is now making a break below the $2.90 support zone, near the midpoint of the channel. The next near-term support zone in-line can be found in the $2.80 area while the lower limit of the channel currently runs near $2.70 levels.
Source: xStation5
