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Natural gas<\/a> stalls out to take a rest and consolidates to trade inside day today. However, today\u2019s narrow range is contained in the lower half of yesterday\u2019s price range reflecting continued selling pressure. That selling pressure kicks in again upon new signs of weakness.<\/p>\n<\/div>\n<\/div>\n Thursday\u2019s decline found support at a low of 2.595, while today\u2019s low is 2.60. Since they are close the lower price level should be watched for continued signs of weakness. A short internal uptrend line (blue dots) reflects support of the past two days, and you can see how today\u2019s low is higher as the trendline ascends as well. The 78.6% Fibonacci retracement is at 2.58, while the 88.6% level is at 2.54. Either represents a price area where support might be seen if natural gas continues to correct lower. The higher level is joined by the rising blue dotted trendline and the lower-level matches with the lower rising trendline.<\/p>\n Natural gas needs to get out of consolidation before it has a chance to get moving again. Volatility has been shrinking as the larger trading range has shrunk in the past month or so. This can be seen from the lower swing highs and lower swing lows more recently.<\/p>\n On the upside, a decisive breakout above today\u2019s high of 2.68 signals an inside day breakout with natural gas next confronting yesterday\u2019s high of 2.76. If it can get back above there and close above it, there is a chance to then break out above the double swing highs at 2.87. We will be watching to see if yesterday\u2019s test of the 78.6% price zone holds and eventually rejects price to the upside. The 2.87 swing high completed a 78.6% retracement (2.89, close enough) before reversing and the current bearish pullback also arguably completed a 78.6% (2.58) retracement as well. This reflects symmetry between the two retracements.<\/p>\n As first noted yesterday, natural gas is on track to end the week with a bearish reversal inverted hammer candlestick pattern. Also, the prior week ended relatively weak as well. Therefore, starting next week, a weekly bearish signal triggers on a decline below 2.595.<\/p>\n For a look at all of today\u2019s economic events, check out our\u00a0economic calendar<\/a>. <\/b><\/p>\n<\/div>\n<\/div>\nLower Support Levels<\/h2>\n
Inside Day Breakout Above 2.68<\/h2>\n
This Week Completes Bearish Weekly Reversal Candle<\/h2>\n