Technical outlook:
Natural Gas dropped further through 6.28 intraday on Thursday as bears remain in control. The commodity is trading around the day's low at 6.28 and is expected to pull back towards 8.50 in the near term before turning lower again. Bears will be poised to hold prices below 9.65 to keep the near-term structure intact.
Natural Gas has produced a religious uptrend between 1.53, the low of January 2020, and 9.65. Also, note that it has surpassed the Fibonacci 0.618 extension projected at 9.55 as seen here on the daily chart. Ideally, prices should now drop in a meaningful corrective wave towards 4.63, which is the Fibonacci 0.618 retracement of the entire rally.
Natural Gas has produced its lower degree downswing between 9.65 and 6.28. Prices should be supported around the Fibonacci 0.382 retracement as seen on the chart and pull back through 8.50 in the near term. Bears will be inclined to come back in control thereafter and drag the price lower towards 4.63.
Trading plan:
Potential short-term rally to 8.50, then lower again through 4.63 against 9.65
Good luck!
