The price of natural gas futures are trading sharply lower with the prices down close to 4% on the day. The move lower comes after the price tried to move above its 200 hour moving average (green line in the chart above) at $3.50. The high price reached $3.59 before rotating back to the downside. More recently, the 100 hour moving average has been broken at $3.34. The current price trades at $3.30.
Last week (Tuesday, January 17), the price traded modestly above the 200 hour moving average for a number of hourly bars, but could not muster any momentum to the upside. The price rotated back to the downside and moved to a new level going back to June 2021 at $3.09.
With the price back below the 100 hour moving average, the sellers are in firm control. The low price from yesterday’s trade reached $3.24. Move below that level and traders will be targeting the low price from Friday at $3.09.
Going forward, would take a move back above the 100 hour moving average and the 200 hour moving average – and stay above – to give the buyers upside hope. Absent that, and the sellers are still winning and in control.