Nymex Natural Gas (NG)
No change in Natural gas’ outlook. While some more recovery might still be seen, upside is expected to be limited below 50% retracement of 4.16 to 2.409 at 3.28 and bring fall resumption. Below 2.63 minor support will flip intraday bias back to the downside for 2.409. Break there will target to 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 no 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
