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. For further information on this and other Autochartist products, visit our website at www.autochartist.com

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