Natural Gas: Selling Set To Start Soon
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Increasing inflationary pressure are set to attract bears to trigger shorts in natural gas above $5.480 as a tight trading range confirms the advent of a selling spree soon.
No doubt the presence of Storm Roslyn near Mexico’s Pacific coast, with heavy rains and flash flooding continued even as the storm weakened while moving inland which may keep the weather in favor of natural gas bears.
Natural Gas Futures Monthly Chart
On the monthly chart, futures have been showing constant slides since the formation of a seasonal peak on August 23, 2022.
Despite a reversal from this month’s low at $4.906, growing exhaustion is still visible as the overstocking of the oil and gas has trapped most western countries are bound to sell both energy components at cheaper rates. This confirms that the monthly candle for this month could see more downside till the month ends.
Natural Gas Futures Weekly Chart
On the weekly chart, futures have witnessed the formation of the ‘Bearish Crossover’ as the 9 DMA has crossed down below the 26 DMA which confirms the thick presence of bears at the current level as this week’s beginning of this week’s candle could drag down the futures toward the lows of $4.444. as this week’s candle has started the day below the lower end of ‘Ichimoku Clouds’.
Natural Gas Futures Dailly Chart
On the daily chart, the price is showing indecisiveness as most of the traders are still expecting a reversal from the current levels, but the majority looks suspicious about the strength of the current trend as the 9 DMA and 26 DMA have crossed below the 200 DMA which indicates a sudden selling spree could start soon.
Finally, despite wild price swings, futures could test fresh lows this week as the growing suspicion over the strength of the natural gas bulls has grown too much at the current levels.
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