Analysis of natural gas in the near term

Natural Gas at the basic level

Natural gas prices for September fell on Tuesday to their lowest level in 9 months, settling on a sharp decline as a result of expectations of lower temperatures in the United States and higher US natural gas production, and this reduces the demand for natural gas by electricity providers to operate air conditioners.

This is likely to keep storage levels well above average.

Natural gas at the technical level

Gas prices have fallen to 2.75 levels and we still expect the declines to continue as long as we trade within the descending price channel on the daily frame.

We are currently targeting 2.50 levels at which point the gartli harmonic pattern completes.

It is possible that the pullback will continue towards the lower boundary of the descending price channel at the 2.30 levels.

This scenario fails if the channel breaks higher by closing the highs of about 3.00 USD.