Technical outlook:
Natural Gas might have found interim support at around 6.06 on Friday after having reversed from the 9.65 highs registered on June 08, 2022. The commodity is seen to be trading close to 6.15 at this point in writing and is expected to rally towards 8.3 in the near term. Bears might be poised to hold prices below 9.65 to keep the momentum intact.
Natural Gas seems to have terminated its larger-degree upswing at around 9.65 early this month. Please note that the above upswing between 1.5 and 9.65 looks complete now and prices are on their way to producing a corrective drop towards 4.63 going forward. Also, note that 4.63 is the Fibonacci 0.618 retracement of the above rally, hence probabilities remain high for a bullish turn.
Natural Gal has further managed to carve the first leg of its corrective drop between 9.65 and 6.06 in the past few trading sessions. Prices are expected to pull back through 8.3 in the near term before turning lower again towards 4.63. Traders might be preparing to add fresh short positions at around 8.3.
Trading plan:
Potential drop through 4.6 against 9.65
Good luck!
