Natural Gas futures are forming into a very well structured Channel Up chart pattern, shown here on the 30-minute candlestick chart. This pattern has established very clear support and resistance for the market despite a high degree of volatility and a wide trading range, encouraging the likelihood for the pattern to continue developing Friday’s swift move higher came after a pivot low on the chart, successfully retesting the support provided by the Channel Up chart pattern. This creates a potential launching-off point for Natural Gas to rally back towards the upper end of the channel, with resistance resting near the $4.50 price level. This pattern is both well-defined and fairly new in its development. With the rising angle of the market suggesting a gradual uptrend in the longer term with the possibility of several swing trading opportunities to arise within the boundaries of the channel as the pattern culminates. A break below last week’s pivot price of $4.25 would negate the pattern and initiate a downside breakout, though the current strength of the market diminished the likelihood of this occurring during the shortened US holiday trading week ahead.

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