Natural Gas: Wobbling Exhaustive Candle Set To Trend More Bearish
Satendra Singh | Aug 17, 2022 10:15AM ET
The recent movement of natural gas on the daily chart indicate the final attempt by the bulls to try to test the recent $9.665 on June 8, 2022, but found it difficult to breathe here amid growing fear for the Fed rate hike.
Several Fed officials have signaled over the past week that the U.S. central bank will still act decisively to combat inflation, helping lift the dollar back up. U.S. retail sales data due later on Wednesday will also be watched closely as an indicator of the economy's resilience.
Futures continued on an uptrend since the start of the week, but a sharp upward move trend set to take a U-turn on Wednesday as the current fall looks evident enough to turn steeper as futures have finally completed double top at $9.665 on Wednesday that could keep the trend highly bearish as the bears have turned more aggressive at this point.
Even though futures are still trying to defend their front base at $9.4 but a breakdown below $9.224 will trigger a heavy sell-off and natural gas bears will set fresh targets.
Finally, if futures find a sustainable move below $9.224 on Wednesday it could be disastrous for the natural gas bulls.
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.
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