Nymex Natural Gas (NG)

Natural gas continues to stay in tight range today. While downside momentum is diminishing with 4 hours MACD staying above signal line, another fall could still be seen with 4.79 resistance intact. Current decline from 6.108 might still extend further towards 4.157 key support level. On the upside, however, above 4.79 will argue that a short term bottom is formed with bullish convergence condition in 4 hours MACD. In such case, stronger rebound could be seen towards 5.06 resistance next.

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. Pull-back from 6.108 is viewed as a correction to rise from 2.409 only. In other words, 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, however, sustained break of 4.157 will dampen this bullish view and indicate that rise from 2.409 is possibly completed. In such case, focus will be turned back to this low.

Nymex Natural Gas Continuous Contract 4 Hours Chart

Nymex Natural Gas Continuous Contract Daily Chart