Henry Hub Overbought

The October nat gas contract is overbought suggesting a correction. Support is found at the 2.50 price. If price reaches that support buyers may find interest. If price breaks through support we may find prices reaching towards 2.338. Warmer temperatures are predicted to firm up through the month of Oct. Prices are currently within supply marked by the yellow lines. This denotes a bearish direction in price. Just below it you have another supply area that failed and prices continued to climb higher to the second supply area. if prices close just below the bottom yellow line of supply then look for prices to drop to 2.50. If they fall no further before the seasonal pop then at some point prices will address the lower prices below 2.50.