Natural gas back challenging range floor

Natural gas has been trading in tight range since June. Support is lying around $2.7/mmbtu and resistance at $2.95/mmbtu.

After Natural gas bulls failed to break above range high last week, bears are totally in control so far this week and they are back challenging the range floor at $2.7/mmbtu.

Natural gas is currently trading at $2.7/mmbtu.

In early July, Natural gas broke the range floor, however it bounced back into the range next day while making low around $2.64/mmbtu.

Price is likely to test previous lows around $2.55/mmbtu and $2.4/mmbtu and likely to reach as low as $2.35/mmbtu.

In spite of recent drop in weekly injection to storage, (latest was 65 billion cubic feet), net inventory remains almost 20% above its 5 year average, suggesting storage will be in much better position this year heading into winter months.