Natural gas might not be done with its correction yet as price is still hovering within the area of interest previously marked. A break above this could suggest that the uptrend might still resume.
The 100 SMA is below the longer-term 200 SMA for now, so the path of least resistance is still to the downside. However, the gap has narrowed enough to reflect a slowdown in selling pressure and signal a possible bullish crossover. Price is moving above both moving averages to show that buyers are regaining the upper hand and that these indicators could hold as support from here.
Still, the 61.8% level that lines up with a former support area is keeping gains in check. Price might need to close significantly above this to confirm that that buyers are still in control.
RSI is on the move down but seems to be changing its mind halfway through. Turning back up suggests that bullish momentum might return and could keep losses in check. Stochastic is still heading lower to show that sellers have energy left. The oscillator has room to head lower before hitting the oversold region, which means that bearish momentum could stay in play for a bit longer.
Natural gas is enjoying some upside pressure after the Energy Information Administration reported a decline of 204 billion cubic feet for the week ended March 8, still pretty close to estimates at 208 billion cubic feet. This somewhat eases oversupply concerns especially since demand is projected to tick lower while the warmer months roll in.
Several areas of the US are still experiencing colder than usual weather, though, so demand could stay elevated for a few weeks. Total stocks now stand at 1.186 trillion cubic feet, down 359 billion cubic feet from a year ago and 569 billion below the five-year average, the EIA said.