Natural Gas Prices Slide as Buyers Face Storage Test
Natural gas futures took a hit on Tuesday after reaching the $2.976 swing bottom. The market is now in a downtrend, according to the daily swing chart, and needs a trade through the main top at $3.395 to reverse it.
The short-term range for November natural gas futures is between $2.896 and $3.395, with a 50% retracement zone of $3.146 to $3.087 acting as resistance. The market has already broken through this zone, making $3.087 the new first resistance level.
The 50-day moving average at $3.039 is also a barrier for buyers, who were unable to hold onto gains above it during Wednesday's session. The lowest price reached on Tuesday was $2.966, but it did not establish a new bottom or change the swing chart structure.
The first support level for November natural gas futures is the September low at $2.902, followed by the August bottom at $2.896. A sustained move below $2.896 would indicate growing momentum in selling.