As the world’s leading investment manager and financial market expert, I am here to provide you with the most insightful analysis on the current state of natural gas futures. The recent price action is indicating a clear bearish trend, following the double-top formation that I previously highlighted. Technical indicators are pointing towards further declines, making it crucial for traders to stay informed and prepared for what lies ahead.
Weekly Chart: Identifying Key Levels
On the weekly chart, natural gas futures have opened with a significant gap down, signaling persistent selling pressure. Immediate resistance is at $3.093, with a major hurdle at $3.265. Support can be found near the 9-day moving average ($2.793), and a breach below this level could lead to a test of $2.692.
Daily Chart: Monitoring Moving Averages
Zooming in to the daily chart, natural gas futures are currently below the 50-day moving average after confirming the double-top pattern. Immediate support is at $2.9, with resistance levels at $3.082 and $3.161. These levels will be critical for any potential upward retracement attempts.
4-Hour Chart: Bearish Signals Intensify
The 4-hour chart reveals bearish crossovers, with the 9-day and 20-day moving averages moving below the 50-day moving average. This indicates increasing downward pressure, with the 200-day moving average at $2.873 serving as a key support level. A breakdown here could lead to new lows in the short term.
Analysis and Conclusion
Currently, natural gas futures are stuck in a bearish range between $3.093 and $2.841. A breakout from this zone will provide traders with clearer directional cues. Until then, caution is advised as the technical outlook favors further downside. It is important to exercise judgment and trade at your own risk, as the author does not hold any position in natural gas futures.
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