Unprecedented Natural Gas Futures Movement Analysis: Bears Ready to Strike Again
As the week commenced, the natural gas futures market witnessed a significant gap up, attracting big bears to enter the fray. The bulls managed to hit a new high on Monday at $4.932 before facing a steep slide from that peak. Currently, the futures are testing crucial support at the 9 DMA after hitting a high last Friday.
If the support at the 20 DMA at $4.111 is not maintained, we can expect a continued downward slide in the coming days. The upcoming announcement of gas levels on Thursday is likely to further fuel the bears’ aggressive behavior.
The market has been full of surprises this week, leaving both bulls and bears uncertain about the future. The Accuweather reports predicting wild storms and extreme weather conditions add to the unpredictability of the situation.
In terms of technical levels, the daily chart shows that the futures are struggling to hold the support at 9 DMA, with potential downside targets at the 20 DMA and 50 DMA. On the weekly chart, a bearish hammer formation signals further selling pressure in the near future.
Investors are advised to proceed with caution and assess their risk tolerance before taking any positions in natural gas futures based on this analysis. Stay informed and monitor the market closely to make informed decisions regarding your investments.