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.
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.
Disclaimer: The author of this analysis does not have any position in natural gas. Readers are advised to take any position at their own risk, as Natural Gas is one of the most liquid commodities in the world.