Exhaustion set to increase selling spree for natural gas futures as the Federal Reserve Chair Jerome Powell warned there is no quick cure for fast-rising prices.
Undoubtedly, Powell did not hint at what the Fed might do at its upcoming Sept. 20-21 policy meeting, but the officials are expected to approve either a 50-basis-point or 75-basis-point rate increase.
This development on the probable interest-rate hike could add one more leg to bearish sentiments that the large Hedge Funds were ignoring by keeping natural gas prices in an upward direction during the whole month of August 2022.
Despite the growing weakness, natural gas once again hit the first seasonal peak level at $9.665 in today’s trading session and currently trading at $9.473 at the time. As I write this analysis, it looks evident enough to feel the quantum of the selling spree that might be an advent of a steep fall that will likely continue during the upcoming weeks.
Finally, I conclude that the natural gas futures is set to test the floor in a daily chart once again at $7.5 during the upcoming week as the trapped bulls could run downward since the Natural Gas Futures could start the upcoming week with a gap-down opening.
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 of the world.