Movements of Natural gas futures since Sept. 1 indicate that a steep fall could occur throughout September amid decreasing fear of winter shortage as the inventory build-up is healthy.
Technically speaking, the weekly opening of this week had already capped the upside at $9.547 and continued to insist that bears remain aggressive during the whole week.
In a weekly chart, natural gas has completed the formation of a confirmation candle for the ‘Exhaustive’ candle formed during the last week, confirming a steep slide could continue during the whole week of September 2022.
In a daily chart, Friday’s fall indicates the final escape of trapped bulls inside the overbought territory.
A weekly closing by natural gas prices below $8.4 will confirm this slide to turn steeper than ever before as currently, natural gas prices are trading at $8.730, which shows increasing selling pressure, expected to continue during September 2022.
Natural gas prices could see sharp sell-offs on every upward swing as the bulls look not to hold the selling pressure anymore for a long time at this time of the year.
Disclaimer: The author of this analysis does not have any position in Natural Gas futures. Readers are advised to take any position at their own risk, as Natural Gas is one of the most liquid commodities in the world.