Natural Gas Price Analysis: XNG/USD Prods Resistance-Turned-Support Around $2.66

  • Natural Gas price remains pressured after reversing from an 11-week high.
  • Bearish MACD signals, RSI’s retreat from overbought territory adds strength to downside bias about XNG/USD.
  • Weekly support line, 200-SMA holds the key to the further downside of the Natural Gas Price.

Natural Gas Price (XNG/USD) remains on the back foot around $2.68 as bears attack a short-term key support line, previous resistance, heading into Monday’s European session.

In doing so, the XNG/USD also justifies the bearish MACD signals and the RSI (14) line’s retreat from the overbought region.

As a result, the energy instrument is likely to break the immediate support line of around $2.66.

However, a one-month-old horizontal support zone, surrounding $2.57-58, appears a tough nut to crack for the Natural Gas bears to retake control.

Even so, the 200-SMA level of near $2.37 may act as the last defense of the XNG/USD buyers, a break of which could direct the commodity towards the monthly low of around $2.14.

On the flip side, the Natural Gas price recovery needs validation from the $2.80 ahead of challenging the March month swing high of near $3.08.

In a case where the XNG/USD remains firmer past $3.08, the yearly high of around $4.17 and then the $5.0 psychological magnet will be in the spotlight.

Overall, Natural Gas price is likely to witness a pullback but the trend remains bullish unless the quote drops below $2.57.
 

Natural Gas Price: Four-hour chart

(Click on image to enlarge)

Trend: Limited downside expected


More By This Author:

Mullen Automotive Stock Forecast: Muln Meets Nasdaq 10-session Requirement
Gold Futures: Decline Now Appears Contained
EUR/USD Price Analysis: Mid-1.0700s Appear Tough Nut To Crack For Euro Bears

Disclaimer: Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only ...

more
How did you like this article? Let us know so we can better customize your reading experience.

Comments

Leave a comment to automatically be entered into our contest to win a free Echo Show.
Or Sign in with