Bulls Face Uphill Battle as Natural Gas Struggles at $2.83 Resistance

Natural gas prices continue to feel pressure after failing to break through the $2.83 resistance level, which has kept bulls waiting. Despite a lower daily high of $2.80 and a three-day low of $2.71, there's still a potential breakout setting up for the next major move.

The 20-day moving average and the recent lower swing high of $2.81 have defined a key resistance zone for several days, with that zone now extending to the slightly higher swing high of $2.83 reached on Wednesday. This shows an unsuccessful attempt to trigger a bullish reversal signal above the lower swing high.

The failure to recover the $2.83 level indicates that the downtrend remains intact. If there is a successful upside breakout later, it could add significance to the pivot zone. However, any rally faces overhead resistance near the falling 100-day moving average at $2.92 and the 50-day moving average near $3.01.

The 100-day moving average marked resistance during the July advance, while the 50-day moving average has not been fully tested as resistance since it broke to the downside in early July. Since the 50-day moving average is falling faster than the 100-day moving average, it will be getting closer to their similar price zone.