Nymex Natural Gas (NG)
Natural gas’ rise is still in progress and should be target 4.162 resistance. As discussed before, break there will solidify the case that it has bottomed out in medium term already and in such case, further rally should be seen to 4.575 resistance next. On the downside, below 3.733 minor support will indicate that an intraday top is formed and will turn bias back to the downside for some pull back.
In the bigger picture, medium term fall from 13.69 is treated as part of the long term consolidation pattern that started at 15.78 back in 2005. With daily MACD turned positive, a short term bottom should at least be in place at 2.409. Also, such development argues that fall from 13.69 might have completed after meeting 100% projection of 15.78 to 4.593 from 13.69 at 2.50. Break of 4.162 resistance will affirm this case and bring stronger rally to test 55 weeks EMA (now at 4.79) and then 38.2% retracement of 13.69 to 2.40 at 6.71. Nevertheless, another fall could still be seen as long as 4.162 holds. Still, we’d expect strong support from 1.96 (02 low) to finally conclude the whole decline from 13.69.
Nymex Natural Gas Continuous Contract 4 Hours Chart
Nymex Natural Gas Continuous Contract Daily Chart
