Natural Gas Prices Plummet as Bearish Sentiment Prevails in Market

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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.

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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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