Nymex Natural Gas (NG)

Natural gas' rebound is likely still in progress and intraday bias remains on the upside as long as 3.549 minor support holds. As mentioned before, prior break of 3.717 support turned resistance suggests that medium term down trend is not ready to resume yet and consolidation from 3.155 is still in progress. FUrther rise might be seen to 4.138/387 resistance next. But upside should be limited below 4.575 resistance. On the downside, below 3.549 minor support will flip intraday bias back to the downside and put focus back to 3.155/225 support zone.

In the bigger picture, we're holding on to the view that price actions from 3.155 are merely consolidation to the medium term fall from 13.69. Another rise might be seen before the consolidation completes but upside is expected to be limited by 4.575 resistance. As mentioned before, whole fall from 13.69 is treated as part of the long term consolidation pattern that started at 15.78 in 2005. Hence upon break of 3.155 low, further decline should be seen to 100% projection of 15.78 to 4.593 from 13.69 at 2.50. On the upside, however, break of 4.575 resistance will in turn argue that Natural gas has already bottomed out at 3.155 and could pave the wave for 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