On Wednesday, the natural gas futures hit a new peak of this season at $9.425 as the technical breakout was pending after trading inside a tight range. The bulls have been struggling since the first trading session of this week.
The current move was a steep upward move that has pushed the bulls inside the “Bulls Trapping Zone” – from $8.938 to $9.447. The bulls could hardly spend a day inside the 'Trapping Zone' as this move has not only formed the ‘Double Top’ in the weekly chart but also attracted bears.
Technically speaking, in a daily chart, the natural gas futures are showing a sharp selling spree above the recent high at $8.989 during the first week of May 2022. If the natural gas futures could not hold the immediate support at $8.282, the selling spree could pick up more speed during the upcoming three trading sessions.
Immediate support is at $8.925, second at 9 DMA – currently at $8.470, and third support is at 26 DMA – currently at $7.885. The price could attract sellers at every upward move as today’s sudden surge has attracted big bears to remain in the driver's seat till this weekly closing.
If the natural gas futures could not uphold today’s low, current exhaustion could continue to keep the trend in favor of the bears during the upcoming weeks ahead as the final support for the natural gas futures is at $8.068.
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.