Nymex Natural Gas (NG)

Natural gas's fall extended further to as low was 4.377 last week even though downside momentum has diminished a bit. Further decline is still expected as low as 4.603 minor resistance holds. Correction from 6.108 is targeting 4.157 support. Nevertheless, we're expecting strong resistance from 4.157 to conclude the correction and bring another strong rise. Above 4.603 minor resistance will flip intraday bias back to the upside. Further break of 5.06 support support turned resistance will argue that fall fro 6.108 is finished and will bring retest of this 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. 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 support 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