Natural Gas continues to shape higher forming a cup handle in 2023. If the winter is cold, gas could spike past $3.00.

Natural Gas on the monthly timeframe has been forming a cup handle pattern since March 2023. The lows formed in April and now gas looks to be forming the rise side on the 'cup' pattern. Resistance for the commodity sits at $3.00, however a push to here and drop lower could form the handle, and then a possible push past $3.00 and on towards $3.500 (December 2021 lows). Gas is a very dependent commodity on weather conditions, specifically in the USA. Right now it is too early to determine whether or not it will be a cold winter as most of America is currently in the middle of the summer season. Therefore entering gas may not be the best option unless you're attempting to swing trade the commodity up to $3.00 and onwards, or want to hold long-term in an ETF or long-dated futures. RSI is currently reading 43.7 and hasn't really moved much in 2023 with MACD still trending negative, but as each day passes the gap between the high and low is closing in, suggesting a possible trend reversal in the future. Downside support for the commodity sits at $2.098 followed by $2 and then $1.603 all-time-lows.