Nymex Natural Gas (NG)

Natural gas falls further as expected and at this point, intraday bias remains on the downside as long as 3.888 minor resistance holds. As discussed before, whole triangle consolidation from 3.155 has possibly completed at 4.138 already. Break of 3.717 will add some credence to the case that medium term down trend is resuming. In such case, retest of 3.155/388 support zone should be seen next. On the upside, above 3.888 will delay the bearish case and suggest that some more consolidation could be seen first.

In the bigger picture, recent development suggests that down trend from 13.69 is still in progress. As such decline is treated as part of the long term consolidation pattern that started at 15.78 in 2005, further fall could be seen to 100% projection of 15.78 to 4.593 from 13.69 at 2.50. Break of 3.717 support will be the first signal of down trend resumption while break of 3.155 low will confirm. On the upside, though, break of 4.387 resistance, will turn favor to the case the natural gas has bottomed out in medium term. Further break of 4.575 will confirm this case and bring strong rebound to 38.2% retracement of 13.69 to 3.15 at 7.18 and possibly above.

Nymex Natural Gas Continuous Contract 4 Hours Chart

Nymex Natural Gas Continuous Contract Daily Chart

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