Nymex Natural Gas (NG)

Natural gas dropped further to as low as 4.54 last week and remains weak. Fall from 6.108 is still underway and initial bias remains on the downside this week for 4.157 key support level. On the upside, above 4.79 will turn intraday bias neutral and bring recovery. But break of 5.06 support turned resistance is needed to be the first signal to indicate that natural gas has bottomed. Otherwise, short term risk will remain on the downside.

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

Nymex Natural Gas Continuous Contract Weekly Chart

Nymex Natural Gas Continuous Contract Monthly Chart