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.Disclosure page for full disclaimer. Connect with Andrew on Google+.