- Natural gas creates a 4-week slide
- Holds below long-term uptrend line
- Momentum oscillator stand in oversold region
(May delivery) are completing the fourth straight red week, tumbling to a fresh five-month low of 2.84 and breaking the long-term uptrend line to the downside. Also, the commodity is holding beneath the 200-day simple moving average (SMA), opening the way for steeper decreases.
Immediate support could come from the latest low of 2.84 before sliding toward the 2.50-2.60 support region, taken from the bottoms in November and September 2024.
However, a rise above the 200-day SMA could add some optimism for a potential rest near the 3.30 resistance ahead of the ascending trend line, which lies near the 20-day SMA at 3.50.
Technically, the stochastic oscillator has been fluctuating in the oversold region since mid-April, while the RSI is diving below the 30 area.
To conclude, natural gas futures have been sold aggressively, reaching attractive levels for a bullish reversal. For that to happen, though, the price will have to set a strong foothold within the 2.50 area.