NYMEX April Natural Gas futures (NGAJ0):
In the medium-term, NGAJ0 is trending lower, within a descending channel. The forward curve and the weekly continuation chart illustrate a weak market.
In the short-term, however, NGAJ0 is forming a drift pattern as it is approaching the lower channel line: this pattern illustrates that the current decline is running out of steam and that a short-term corrective bounce is due. This being said, we are not looking for a strong price bounce. Like in the prior two corrective bounces, we are looking for a slower move up: the medium-term trend is down, and the upper channel line will obligingly decline towards prices.
First strong resistance is at the gap left between 5.000 and 5.014, then next strong resistance is in the 5.125-5.130.
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