Nymex Natural Gas (NG)
Natural gas’s rally extended further to as high as 4.035 last week and remains firm. Upside momentum might be diminishing a bit but further rise is still expecvted wtih 3.733 minor support intact. Next target is 4.162 key near term resistance and break there will solidify the case that Natural gas has bottomed out and bring further rise towards 4.575 resistance next. On the downside, below 3.733 will indicate that a short term top is in place and bring pull back first.
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 staying 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 4.76) 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
Nymex Natural Gas Continuous Contract Weekly Chart
Nymex Natural Gas Continuous Contract Monthly Chart
