Nymex Natural Gas (NG)

Natural gas dropped sharply after failing to break through near term trend line resistance decisively. Intraday bias is turned neutral again. Break of 5.23 support will suggest that choppy recovery from 5.060 has completed at 5.68 already. In such case, whole correction from 6.108 should still be in progress for another low below 5.06 before completion. On the upside, though, above 5.68 will flip intraday bias back to the upside. Break of 5.87 resistance will confirm that the three wave correction from 6.108 has already completed and will bring stronger rally to retest 6.108 high.

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 and might have completed at 2.409 already. Rise from 2.409 is still in progress and should target 38.2% retracement of 13.694 to 2.409 at 6.72 and beyond. On the downside, break of 4.157 support is needed to indicate that medium term rise from 2.409 has completed. Otherwise, outlook is neutral at worst even in case of deep pullback.

Nymex Natural Gas Continuous Contract 4 Hours Chart

Nymex Natural Gas Continuous Contract Daily Chart