Nymex Natural Gas (NG)

No change in Natural gas' outlook. Further fall is still mildly in favor with 4.79 minor resistance intact. However, as we're treating current fall from 6.108 as a correction in the larger rally, downside is expected to be contained by 4.157 support and bring strong rebound. Above 4.79 will argue that natural gas has bottomed out and will flip intraday bias back to the upside for 5.06 resistance first.

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