Market update: Natural gas price bearish developments brew on the four-hour chart

The battle between bulls and bears continues

As of the information provided, it seems that natural gas prices have experienced a cautious decline over the past week, down about 2.3% over the last two weeks. This decline represents the worst performance since early July. Despite this, natural gas remains in a neutral price setting.

Looking at the daily chart, it appears that natural gas has had difficulty making significant upside progress since it cleared the falling trendline from August. Throughout the year, natural gas has been ranging between 3.027 and 1.967.

One important technical indicator to consider is the 200-day moving average (MA), which has been approaching current price levels. Currently, it sits above the 23.6% Fibonacci retracement level at 3.297. If the price continues to move sideways or remains range-bound, the 200-day MA may get closer to the current levels, potentially influencing a downside focus.

Natural gas daily chart

Will June lows be revisited?

Zooming in on the four-hour chart offers a more interesting development of price action. For starters, natural gas has confirmed a breakout under a rising zone of support from June. This past week, prices fell to the midpoint of the Fibonacci retracement level at 2.507 before bouncing back to rising support. The latter held as new resistance, maintaining the integrity of the trendline breakout.

Meanwhile, a bearish Death Cross has formed between the 50- and 100-period moving averages. This is adding fuel to the near-term bearish perspective. That said, a confirmatory breakout under 2.507 would underscore a bearish view considering price action on the daily setting. Further losses may open the door to a revisit of June lows.

Natural gas four-hour chart

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