Nymex Natural Gas (NG)
Natural gas’ decline extended further to as low as 2.467 today so far, meeting mentioned long term projection target of 2.50. At this point, intraday bias remains on the downside as long as 2.755 minor resistance holds and further decline could still be seen to next key psychological level of 2.0. ON the upside, above 2.755 will turn intraday outlook neutral an bring consolidation. But a break of 3.155 support turned resistance is needed to indicate that a short term bottom is formed. Otherwise, outlook remains bearish.
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 and has met target of 100% projection of 15.78 to 4.593 from 13.69 at 2.50. Already. At this point, there is no indication of bottoming yet and further decline could be seen to 2.0 psychological level. But after all, we’d expect strong support above 1.96 (02 low) and bring at least a sizeable rebound. On the upside, break of 4.162 resistance is 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
