Natural Gas: Tuesday Could Be A Turning Point
2022.05.25 04:34
The natural gas bulls are feeling a lack of strength above the psychological resistance at $9 after the Monday’s monster move. The bulls were aggressive enough to move upward yesterday but lost steam amid the presence of big bears near the $9 – $10 levels.
Currently trading at $8.863, natural gas tested the day’s high at $9.011 and the day’s low at $8.837. This confirms the advent of exhaustive moves ahead if natural gas finds a sustainable move below today’s low.
Natural gas futures daily chart.
Technically speaking, natural gas has formed an exhaustive candle at the top of this week’s movement in a daily chart since the weekly opening confirms a steep fall up to $8.282 in today’s trading session. But, volatility could pick up below $8.516.
The price could take a decisive bearish move if it finds a breakdown below the first support at $8.542. The second support is at the 9 DMA, which is currently at $8.133, and the third support is at 26 DMA, which is currently at $7.678.
The bulls could continue to buy dips below $8.062 as the bulls turn aggressive below this “Launching Pad,” as I have already explained in my last analysis.
On the other hand, the bears could remain active above the psychological resistance at $9. If natural gas bulls could not take a sustainable move above $9.316, their strength could remain in doubt during this week.
Undoubtedly, a breakdown below $8.665 could drag down natural gas below $8.282 as the bulls could start moving upward from this level before the announcement of the upcoming weekly inventory.
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