ONG Focus | Technical |
Written by Oil N' Gold |
Sun Jan 08 17 09:53 ET
Natural Gas Weekly Technical Outlook
Nymex Natural Gas (NG)
The sharp fall from 3.994 and break of 3.242 support confirmed short term topping on bearish divergence condition in daily MAD. The development also suggests that whole rise from 2.546 is completed at 3.944 too and lengthier consolidation would be seen. Further decline is in favor to 61.8% retracement of 2.546 to 3.994 at 3.099. Strong support should be seen above 2.546 to bring rebound. On the upside, above 3.506 minor resistance will turn bias back to the upside for retesting 3.994. But in that case, we don't expect a break there any time soon and natural gas should stay in consolidative mode for a while.
In the bigger picture, the rise from 1.611 medium term bottom could have made a top at 3.994, just ahead of 50% retracement of 6.493 to 1.611 at 4.052. Natural gas should now turn into a consolidation phase between 2.546/3.994. Nonetheless, another rise is expected as long as 2.546 holds, for 61.8% retracement at 4.628 and above. However, break of 2.546 will confirm completion of the rise from 1.611 and bring retest of 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