Natural gas market key resistance levels and technical chart patterns are beginning to suggest a possible bullish reversal, but until weather and storage fundamentals turn more supportive, additional downside is expected.

Since hitting bottom at a three-and-a-half-year intraday low of $1.511/MMBtu in late February, natural gas futures have attempted to breach the $2.000 barrier, touching as high as $2.009 before pulling back.

Technical chart patterns have been looking potentially bullish since the February 20 bottom triggered by oil producers’ announcments of production cuts for 2024. But there is more downside ahead since the failure to breach the critical resistance level postponed the bullish attack, analysts said.

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