Natural Gas Prices Could Reverse Soon
2022.05.23 15:50
On analysis of the movements of natural gas since the opening of this week, the bulls look too aggressive below the ‘Launching Pad’ at $8.063, as I explained in my last analysis.
This week, natural gas started with a gap-up opening at $8.160, hit the day’s high at 8.261, and is currently trading at $8.056 after testing the day’s low at $8.024 on Monday. Natural gas has tested the psychological support at $8 and looks ready for a bumpy move in today’s trading session to hit the immediate resistance at $.8.3.
Natural gas futures daily chart.
Technically speaking, natural gas could complete the confirmation candle above Friday’s Bullish Hammer in a daily chart, formed after a sharp reversal from the lows of $7.848 on Friday. The formation of a bullish crossover in the daily chart with 9 DMA crossing above the 26 DMA seems to be too encouraging for the bulls.
Natural gas futures 1-hour chart.
In the hourly chart, the natural gas has found sufficient support at 26 DMA after the formation of bullish crossover.
Natural gas futures 15-minutes chart.
In the 15 minutes chart, natural gas is weak as its current position is well below the Ichimoku clouds. Still, a steep reversal is likely, and a sustainable move above the upper end of the Ichimoku clouds will confirm the advent of the next bumpy move above $8.3 in today’s trading session.
Natural gas has started to reverse after testing the day’s low at $7.954 and formed a bullish candle in the 15 minutes chart that confirms a steep reversal.
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