$NG

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Looking at the 1-hour NG (Natural Gas) chart, the market structure recently transitioned from a bullish impulse (pushing from a low of 3.570 up to a peak of 3.694) into a bearish corrective phase. The K-line analysis shows a clear rejection at the 3.694 high, followed by a series of lower highs and lower lows. Price has now broken below the middle Bollinger Band (MB: 3.643) and is riding the lower half of the channel, currently resting at 3.616, just above the lower band (LB: 3.591). The WMA lines (5, 10, 20) are compressing and flattening, signaling a loss of bullish momentum, while the MACD histogram is below the zero line, confirming the short-term bearish bias.

The recent price action paints a classic Head and Shoulders topping pattern (or a complex double-top variation) . The left shoulder formed around 3.650, the head at 3.694, and the right shoulder is forming as price fails to break back above 3.650. The candlestick pattern at the peak shows a bearish engulfing/pin bar rejection. Given this structure, a Head and Shoulders bearish reversal setup is far more appropriate for this timeframe , as the neckline is breaking down.

I predict the price will test the immediate support near 3.590-3.600 (the lower Bollinger Band). If this level breaks, the next target is the structural low at 3.570. My trade plan is to short on a retest of the broken middle band (3.640) or enter upon a confirmed break below 3.600. I will place my stop loss above the right shoulder high (around 3.655) to protect against a fake-out.

When I Start My Trade & Why❓️

I will start my trade only upon the close of the current 1-hour candle if it remains below the WMA20 (3.646). I am following this plan because the MACD is crossing bearish, the price is rejecting the mid-band, and the Triple Exponential Average (TRIX) is flattening/curving down, indicating that the momentum has shifted to the sellers.

Bearish. The chart is set up for a short-term correction. The structure is broken, momentum is fading, and the Head & Shoulders pattern suggests further downside toward the 3.570-3.590 zone before any major bullish continuation can occur.