Nymex Natural Gas (NG)
Natural gas falls further today and with 4 hours MACD turned negative, recent decline might be resuming. Intraday bias is mildly on the downside for 2.692 low first. Break there will confirm recent decline has resumed for next long term projection target at 2.50. On the upside, above 3.003 minor resistance will turn intraday outlook neutral again and bring recovery. But after all, upside should be limited by 3.25/60 fibonacci resistance zone, (38.2% and 50% retracement of 4.162 to 2.692) and finally bring fall resumption.
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
