Nymex Natural Gas (NG)

Natural Gas extended recent decline to 4.359 last week and turned sideway. Intraday downside momentum is clearly diminishing as seen in bullish convergence condition in 4 hours MACD and RSI. However, there is no confirmation of a bottom yet and 4.359 is likely not the bottom we're looking for. Even though, another fall cannot be ruled out, we're still expecting a bottom around 4.3 key long term support and hence downside potential should be limited at this moment. Break above 4.859 will affirm the case that a bottom is already in place and bring rally to 5.477 resistance first.

In the bigger picture, fall from 13.69 is treated as part of long term consolidation that started at 15.65and is still in progress. Further fall could now be seen towards 4.3 low but still, downside should be contained there to conclude such down trend. On the upside, break of 6.24 will indicate that a medium term bottom is finally formed and bring strong, sustained rebound. However, note that firm break of 4.3 will invalidate this view and target 4.00 psychological support next.

Nymex Natural Gas Continuous Contract 4 Hours Chart

Nymex Natural Gas Continuous Contract Daily Chart

Nymex Natural Gas Continuous Contract Weekly Chart

Nymex Natural Gas Continuous Contract Monthly Chart