The December Natural gas contract has been in a relatively tight 3.482 to 3.620 balance bracket over the last 6 days. Additionally, Mondays range covered about 60% of that balance bracket range.

BE READY FOR A BREAKOUT

The market may remain within this balance bracket for several more days. However, when a volatile market such as natural gas is contained within a tight balance for several days, a significant move usually follows the break from balance.

aa_TP_ng_article_11-13.png

UPSIDE

If the market gains acceptance above the 3.620 balance bracket high, it may test the previous 4 day trendline (visible on the chart) that ranges from 3.667 to 3.851. If the market breaks that previous trendline, it may move rather quickly up through that trendline range up to 3.851.

DOWNSIDE

If the market gaina acceptance below the 3.482 balance bracket low, it may test the 3.388 to 3.398 gap below