Nymex Natural Gas (NG)
Short term outlook in Natural gas remains bearish. While some consolidation might be seen in near term, upside recovery is expected to be limited by 3.25/60 fibonacci resistance zone, (38.2% and 50% retracement of 4.162 to 2.692). Current decline, which is part of the whole down trend from 13.69, is expected to resume sooner or later to next long term projection target at 2.50 after completing the consolidation. Nevertheless, decisive break of 3.60 will be an important signal that natural gas has bottomed out and will turn focus to 4.16 resistance.
In the bigger picture, whole medium term fall from 13.69 resumed after completing triangle consolidation from 3.155. Such decline is treated as the third leg of the long term consolidation pattern that started at 15.78 back in 2005. Hence further fall should be seen to next target of 100% projection of 15.78 to 4.593 from 13.69 at 2.50 and possibly below. Nevertheless, we’re expect strong support between 1.96 (02 low) and the 2.5 projection target to finally conclude the whole decline from 13.69. On the upside, break of 4.162 resistance will now be an important signal that natural gas has finally bottomed out.
Nymex Natural Gas Continuous Contract 4 Hours Chart
Nymex Natural Gas Continuous Contract Daily Chart
