Natural Gas Corrects Below 200-Day Average

Natural gas prices have corrected and are now below their 200-day moving average. This correction is significant because it indicates that sellers are regaining control of the market.

The recent high at $3.32 was reached on Monday, but natural gas pulled back to a three-day low of $3.08, falling below the 200-day moving average. The failure to sustain support at this level suggests that last week's advance may have completed an upside target for now.

The next area of support is near the prior swing high at $3.03, followed by $2.98 and then the rising 20-day moving average at $2.95. However, the 50-day moving average at $2.85 remains a crucial dynamic support level for the intermediate trend.

While sellers have regained control, the pullback may ultimately provide the next test of support needed to determine whether the broader advance can resume. A deeper correction could set the stage for another attempt to sustain a move above the 200-day moving average.