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Natural Gas: Tuesday Could Be A Turning Point

BySatendra Singh
Published 10/18/2022, 05:21 AM
NG
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The inflationary pressure looks evident enough to repress the bullish sentiment in natural gas as the gap-down opening explained a lot this week.
Natural Gas Futures Daily Chart
Technically speaking, in a daily chart, futures struggled a lot below the 200 DMA since a breakdown on Oct.10 as the 200 DMA turned into stiff resistance.

This weekly gap-down opening confirmed this weakness as natural gas witnessed a selling spree despite some bouncing attempts by the price.
Natural Gas Futures 1 Hr. Chart
In an hourly chart, the next three hours could be decisive for the natural gas traders if futures could not hold above $5.804 up to 08:00 a.m. today. Undoubtedly a downward move below this level could encourage bears to trigger shorts with their next immediate target at $4.880.

Finally, I conclude that wild price swings could continue to follow the price movements during this week, but the overall trend could remain bearish.

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 of the world.

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