Natural Gas has continued its downward channel after recently breaking lower from pressure created by a bearish descending triangle.
The continued downward channel has been ongoing since November 2014 as a relatively mild winter has reduced heating demand and increased natural gas storage levels just slightly below their five-year average.
Traders are looking for a strong breakout from this channel before considering any reversal. In the meantime, RSI levels of 29 to 31 have created short term trading opportunities. Traders should look for a retest of these RSI levels for short term gains.
Conversely, the MACD signal line has just crossed over, indicating more downside action to come.
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