Nymex Natural Gas (NG)
Natural gas dropped sharply to as low as 2.409 last week, meeting mentioned target of 2.50 projection level before rebounding strongly. Break of 2.755 minor resistance suggests that an intraday low is in place. Initial bias is neutral this week and some consolidations might be seen. But recovery should be limited below 50% retracement of 4.16 to 2.409 at 3.28 and bring fall resumption. Below 2.409 will target 2.0 psychological level next.
In the bigger picture, as discussed before, medium term fall from 13.69 is treated as part of the long term consolidation pattern that started at 15.78 back in 2005. 100% projection of 15.78 to 4.593 from 13.69 at 2.50 is already met but there is not clear sign of bottoming yet. Fall from 13.69 might still extend further as long as 4.162 resistance holds. Nevertheless, we’d expect strong support from 1.96 (02 low) 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
