Natural Gas Market on Brink of Breakout as Crude Oil Tumbles

The natural gas market is currently stuck in an extremely tight range at the bottom of a massive two-year falling wedge. Analysts expect a significant influx of volume once this range breaks, with a major bull breakout requiring a decisive close above $3.30 and $3.40 to target $3.50. On the other hand, if natural gas falls below its established double-bottom support, bears could gain control.

Crude oil's daily downtrend remains firmly in place after a textbook triple RSI divergence signaled the ultimate macro top. With bears currently in total control, crude oil could easily test the $90, $95 region, with an eye toward the $80s by the end of the year if things continue to cool off macro-economically.

The US Dollar Index is staging a highly technical breakout above a long-term megaphone pattern. This breakout hints at higher rate hike expectations, but if it fails, precious metals could surge as a result.