During Wednesday's European trading hours, the price for Natural gas extended its decline, as it reached below the 4.4000 mark. Gas prices have plummeted nearly 33.50% since the high level booked on October 6.
From a technical analysis perspective, the daily candle chart of the commodity price reveals that the price has been declining in a channel down pattern since late October. Meanwhile, the rate was heading to a support and resistance zone, which impacted the rate three times in August. Namely, the 4.1530/4.2330 zone impacted the price.
In the near term future, the price is highly likely going to test the support of the 4.1530/4.2330 zone and the lower trend line of the channel down pattern.
A passing of this level could result in the rate looking for support in the 4.0000 mark and the 200-day simple moving average. Below this level, the price might find support in the August low and July high level zone near 3.7500/3.8200.
On the other hand, a recovery of the price would most likely find resistance in the previously passed zone at 4.7250/4.8400 and the upper trend line of the channel down pattern. In addition, note the 50-day simple moving average near 5.3500.
This overview can be used only for informational purposes. Dukascopy SA is not responsible for any losses arising from any investment based on any recommendation, forecast or other information herein contained.