The current overall trend for Natural Gas is bearish, as seen from the monthly chart. The commodity has possibly just completed the 5th wave of the Elliot Impulse Wave, this means that the next movement is possibly a correction. There is also a divergence as seen in the price action and the RSI Indicator which signals the trend weakening. However, the RSI could still possibly reach the 70 level before the price initiates that 5th wave correction.
Natural Gas, from the weekly perspective, has recently met the key resistance of 8.87 to 9.707, which could mean possible downside pressure is building. The price is also in a double top formation which is a bearish pattern. If the price fails to break the key resistance, it could possibly revisit support areas of 5.507, 3.631. On the other hand, if the price does break the resistance, it could possibly go up and test another key resistance around 13.539 to 15.78 which is the all-time high for the commodity.
On the daily graph for Natural Gas, the price has already seemed to reject at the key resistance and RSI is headed downwards. The price might fall between 6.392 to 5.507 as the 200 MA acts as a strong support confluence. There has also been a continuous decrease in volume from the first time the price tested the key resistance. This may confirm that the price doesn’t have enough momentum to break through the resistance and is now set for a correction. There are a lot of contributing factors pointing to a bearish scenario for Natural Gas.
Although the price might be heading towards a bearish direction, watch out for relief pumps especially on the support levels.