Natural Gas futures continued the steady march higher out of a very large Falling Wedge chart pattern that has been developing for several weeks. The recent surge from contract lows enabled a high-momentum breakout at the $4.20 per million BTU price level, and the chart has held a consistent uptrend ever since. The length and consistency of the Falling Wedge makes the pattern a good candidate for following through on the initial breakout, with a forecast for significantly higher prices generated. As of Thursday’s close, the price is testing minor resistance at the $4.40 price level, with very little in the way between here and the projected price target. With continued strong momentum, nearby Natural Gas futures could reach the anticipated range of between $4.67 and $516 to complete the pattern. If this plays out, it will likely mark the swing low price of $4.10 at the end of the Falling Wedge as a seasonal low, and perhaps a low for the year. Natural Gas has consistently lagged the performance of the rest of the commodities complex, and has significant upside potential in the longer term.

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