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Are you keeping up with the latest trends in the stock market? The natural gas market has seen a significant correction recently, with a decline of 26.7% from the peak. But how does this compare to previous bearish corrections?
Since February 2023, there have been five corrections with declines greater than 20%, and three of those saw drops of more than 26%. The largest corrections were 55.1%, 38.7%, and 35.7%. With the current correction already exceeding a 26% decline and breaking through support levels, the potential for a minimum 35.7% drop has increased.
Will natural gas reach 2.03 and experience a 35.7% drop from the recent high? This pivot zone will be crucial to watch if the price continues to fall.
Understanding the Market Trends
In the bigger picture, bears dominate the natural gas market as lower swing lows and lower swing highs continue to form on the chart. A significant shift will only occur with a rally above the recent high of 3.16, followed by a daily close above it to confirm strength.
Since the February bottom, the first upside breakout occurred with a move above the symmetrical triangle bottom at 2.00. If there is a roundtrip in process, the 2.00 level could be tested as support, given its initial significance as resistance. This level also coincides with a potential 35.7% price correction.
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