Natural gas is still under bearish pressure but might be able to draw buyers out at longer-term support levels. On the 4-hour chart, price is closing in on a rising trend line that coincides with a few more inflection points.

In particular, support might be found at the 50% Fibonacci retracement level around $3.100 and the 100 SMA dynamic support. This moving average is above the slower-moving 200 SMA to confirm that support is more likely to hold than to break.

A larger correction could reach the 200 SMA dynamic support at the $3.000 major psychological mark just slightly below the trend line.

Stochastic is already indicating oversold conditions or exhaustion among sellers, and turning higher would mean a return in bullish pressure. This could be enough to take natural gas back up to the swing high at $3.332 or higher.

RSI, on the other hand, is still moving south to reflect the presence of selling pressure. The oscillator has room to head lower, so price could keep following suit until oversold conditions are met.

Natural gas is being bogged down by the risk-off flows weighing on commodities like gold and crude oil lately. Recall that the Fed shifted to a more hawkish stance with the updated dot plot forecasts, which suggests that the period of low borrowing costs could end sooner than expected.

If that’s the case, business investment and consumer spending could take hits, thereby weighing on demand for fuel and energy commodities.

Natural gas storage confirmed stronger purchases of cooling commodities, though, as the Department of Energy reported a smaller build of 16 Bcf compared to the estimated gain of 71 Bcf. This is also lower compared to the earlier increase of 98 Bcf, easing oversupply fears as well.

Forecasts of warmer weather ahead could continue to keep the commodity afloat and encourage bulls to hop in at nearby support zones.