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Yesterday, bears pushed the price to the lowest level since Sep. 2020! What’s next?

This week’s price action showed once again the weakness of the buyers, which resulted in an important technical event. Could this have been predicted? Yes! I invite you to read today's article, in which you will find out what technical factors influenced the recent drop in natural gas. Have a nice read.

(Click on image to enlarge)

Let’s start today’s analysis with quotes from the last commentary on natural gas published a week ago:

(…) the current situation of the bulls doesn’t look encouraging – especially when we factor in yesterday’s volume, which increased once again, confirming the bears’ involvement in the decline.

Additionally, when we take a look at the weekly chart below, we see that the Stochastic Oscillator generated a sell signal, giving the sellers even one more reason to act.

(Click on image to enlarge)

So, what can we expect in the coming days?

If the sellers manage to close the day under the lower border of the orange consolidation (marked on the daily chart), we could see a decline even to around 1,928, where the size of the downward move would correspond to the height of the formation.

(…) And what else could happen if the bulls failed once again and allowed the bears to move below (…)?

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