The decline in the US natural gas market continued for another week. Natural gas began the new week’s trading with a bearish price gap and continued to move lower. US natural gas prices are down almost 4% on the day and are back below $2.80 per MMBTu for the first time in almost two weeks. New weather forecasts from the US National Oceanic and Atmospheric Administration (NOAA) may explain today’s drop. The new forecast (right side in chart below) points to a lower chance of above-average temperatures in the key Midwest region over the next 8 to 14 days, compared to the pre-weekend forecast (left side in the graph below). However, it is worth noting that new forecasts still suggest a greater than 50% chance of above-average temperatures.
Source: NOAA
If we look at the NATGAS chart on the H1 interval, we can see that the price fell and tested the short-term support zone marked with a 61.8% retracement of the bullish momentum launched in late May and June 2024. So far , the buyers managed to defend themselves. This obstacle and a small rebound occurred in the area. However, the price is still down almost 4% on the day.
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Source: xStation5
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