Commodities
Bearish Pennant Pattern Forms in Natural Gas Futures Chart
A bearish pennant pattern has been identified in the Natural Gas Futures chart from August 21st, 2025. The pattern starts with a pronounced downward thrust, reflecting strong selling momentum.
The price action then contracts into a symmetrical triangle as shown by the converging trend lines. This pennant shape is a market's 'pause', where sellers digest gains and buyers offer token support but neither side has control for now.
The expectation is that this pattern serves as a continuation formation, where a breakout typically downward resumes the established trend. To trade on this insight, an entry order should be placed below the lower trendline with a volume spike to validate the breakout.