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. For further information on this and other Autochartist products, visit our website at www.autochartist.com The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

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