Natural gas prices at henry hub continued its march lower on Tuesday, breaking down below contract low and dropping nearly 3%. Warmer than normal weather is expected to cover most of the United States for both the 6-10 and 8-14 day forecast according to the National Oceanic Atmospheric Administration.
Natural gas prices broke down further on Tuesday after forming a brief bear flag pattern which is a pause that refreshes lower. Prices pushed through the contract low of 2.48 and are now poised to test the 2016 lows at 1.65. Resistance is seen near the former breakdown level which is 2.55. Momentum has turned negative as the MACD (moving average convergence divergence) index generated a crossover sell signal. The MACD histogram, is printing int he red with a declining trajectory which points to stable negative momentum.