Bearish Pennant Pattern Spotted in Natural Gas Futures

A bearish pennant pattern has been identified in the Natural Gas Futures chart by Shortby ChartPathik110 on August 21st, 2025. The pattern starts with a pronounced downward thrust, reflecting strong selling momentum, followed by a symmetrical triangle formation. This 'pause' in price action is characterized by converging trend lines and a decrease in volume during consolidation.

The bearish pennant serves as a continuation formation, where a breakout typically resumes the established downtrend. In this case, validation criteria include a clear downtrend, symmetrical contraction, and volume confirmation. If the pattern is invalidated, it would be due to false breakouts, volume anomalies, or failure to break out.

To capitalize on this analysis, the author recommends waiting for price to close below the lower trendline, accompanied by a volume spike, before entering a trade. The entry point should be just below ₹238.6-₹240, with a stop loss placed above the upper pennant boundary at ₹243.3. The target is derived from the measured move principle, centered around ₹227.