I think the setup presently occurring in natural gas is pretty interesting, as you can see from the chart below the commodity is currently bouncing between its 50- and 200-day moving averages, hitting the 50-day as resistance and finding the 200-day as a support almost on a daily basis over the last week.
I last addressed nat gas and its moving averages on August 13th when I talked about whether these two averages could hold as support, although I was seeing negative divergences in momentum and money flow. So far, it appears the 50-day was not strong enough to fight the divergence but the 200-day MA is doing its best to hold on. It seems there might be a little more weight leaning on the downside from here, but any positive news we get on Friday from Jackson Hole could shift the playing field.
