Natural Gas: Bears Set To Take Over?
2022.06.08 11:15
The natural gas prices rallied after the weekend amid expectations that Hurricane Agatha’s remnants could wreak further havoc. A bullish weather pattern for the 8-15-day period caused a massive spike, aided by US production holding near 95 Bcf/day.
The US gas production could increase to 97 Bcf/day, and a prolonged period of bearish weather patterns could encourage the bears. The bulls look exhausted after a fast run-up since the first trading session of this week.
The bulls have witnessed some bouts of profit booking above $9.4 that may encourage the bears to command the scenario. Prevailing uncertainty could tilt the trend in either direction as the hurricane mania seems to be fading now.
Natural gas 1-hour chart.
Natural gas futures showed signs of exhaustion in the hourly chart after they could not find a breakout above the ‘Stop Loss’ level at $9.552 and returned after testing the day’s high at $9.540. The natural gas bulls are struggling to hold above $9.3 due to the presence of bears above this level.
I find that the recent bullish trend, resultant of the formation of a ‘Bullish Crossover’ on the first trading session of this week but shortly this Crossover could reverse into a ‘Bearish Crossover’ in today’s trading session that could push the prices below $8.5 soon.
The momentum could turn bearish from bullish amid fading probabilities of the redevelopment of the remnants of the tropical storm Agatha into the first-named Hurricane of 2022.
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