NATURAL GAS PRICE ANALYSIS: XNG/USD RETREATS TOWARDS $2.34-35 SUPPORT CONFLUENCE
Natural Gas (XNG/USD) price prints the first daily loss in three as bears prod $2.42 level during early Monday morning in Europe.
In doing so, the energy instrument extends the week-start pullback from a downward-sloping resistance line from early March.
Given the sluggish MACD signals, the XNG/USD’s latest retreat is likely to extend towards a short-term key support around $2.35-34 comprising the 100-bar SMA, 200-bar SMA and a three-week-old ascending trend line.
In a case where the Natural Gas price drops below $2.34, the odds of witnessing a slump towards the Year-To-Date (YTD) low marked in April around $2.11 can’t be ruled out. However, the $2.00 appears a tough nut to crack for the XNG/USD bears and can prod the quote’s further downside.
Alternatively, an upside clearance of the aforementioned resistance line, close to $2.48 at the latest, can convince the Natural Gas buyers to aim for the latest swing high surrounding $2.58.
Following that, the 50% and 61.8% Fibonacci retracement levels of the XNG/USD downturn from early March to mid-April, near $2.60 and $2.71 respectively, can challenge the Natural Gas buyers before the March 08 swing high of $2.78 and the $3.00 gain the market’s attention.
To sum up, the Natural Gas price remains on the bear’s radar but the road towards the south appears long and bumpy.
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