U.S. natural gas futuresOn Tuesday, the plunge was more than 10%. Monday’s surgeThis saw the contract rise more than 10% and break $8 per million British Thermal Units at one time. The highest point since September 2008

Henry Hub prices dropped 10.2% to $7.02 Tuesday. Now, the May contract is down approximately 13% from Monday’s peak.

The price of natural gas is on the rise since Russia’s invasion in Ukraine. Five consecutive weeks of gains are now behind the contract, and it is up almost 90% for this year.

Matt Maley of Miller Tabak was chief market strategist and said that natural gas seemed ripe for technical pullbacks. Maley referred to the relative strength, which is an indicator of momentum. Maley stated that natural gas was number two in terms of overboughtness, going back as far as 2003.

“Its RSI charts are now at levels that were followed by short-term pullbacks, in the past,” he stated Thursday. Natural gas stocks and the related stocks are still our top picks, but we don’t believe that investors should profit from them. Instead, we [are]This is not to say that these assets should be avoided by investors in the short-term.

On Monday, prices rose on the back of forecasts of colder spring temperatures and fuel switching from coal-to-natural gas. Also, record volumes U.S. LNG shipment to Europe drove up their stockpiles.