Natural Gas Weekly Technical Outlook
Nymex Natural Gas (NG)
No change in natural gas's outlook. As long as 3.355 support holds, further rally is still expected. Rise fro 2.575 would extend to medium term channel resistance next (now at around 3.86). Break will target 4.0 psychological level. However, considering that it's near to important resistance level, break of 3.355 will indicate near term topping and would bring deeper pull back towards 55 days EMA (now at 3.327).
In the bigger picture, recent developments argued that medium term decline from 6.108 is completed at 1.902 already. It's bit early to confirm but bullish convergence condition in weekly MACD suggests that the down trend from 13.694 (2008 high) is possibly over too. Sustained break of the channel resistance (now at around 3.88) will set the stage for a test on 4.983 key resistance next. Meanwhile, break of 2.575 support will argue that the rebound from 1.902 is over and the medium larger down trend is still in progress for a new low.
In the longer term picture, decisive break of 3.255 resistance will be an important signal of long term bottoming reversal and could at least give a push to 4.983/6.108 resistance zone.
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